SSA classified me as having "Permanent Total Disability"

[LaidupinMT]

I was classified by SSA as having a permanent total disability in 2021.  I will not turn 65 until August of 2022.  Are there tax breaks that I may be eligible for?

[xmasbaby0]

For disabled adults:

There is an extra amount added to your standard deduction if you are legally blind.   Your federal return does not provide any other credits or deductions for saying you are disabled, with one possible exception.  

There is a credit for the Elderly and Disabled which is so small that very few people benefit from it—-it has not been updated/increased by Congress for decades.

ELDERLY OR DISABLED CREDIT https://www.irs.gov/help/ita/do-i-qualify-for-the-credit-for-the-elderly-or-disabled

There are some states that provide various credits to elderly/disabled folks, so watch for that when you prepare your state return.   The states that I know of that have anything for elderly/disabled are AZ, CT, DE, IA, MO, ND, NY, VE.   There may be others.

[DawnC · Accepted solution]

The elderly and disabled can receive a tax credit that could reduce and even potentially eliminate the tax they owe for the entire year.    Taxpayers who are under 65 years of age can still claim the tax credit if they are retired on permanent and total disability, or if they receive taxable disability income during the year and do not reach the mandatory retirement age by the first day of the tax year.    If you’re unclear what the age is for mandatory retirement, it’s the age when an employer forces employees to retire and it’s different for different businesses.

The IRS defines a permanent disability as one that prevents you from engaging in consistent employment. It does not include activities that relate to ordinary personal and household maintenance. If you can still take care of your house and daily life, that doesn’t mean that you are capable of gainful employment and the IRS understands that.   However, the level of household activity is a factor the IRS may consider in determining whether you have a permanent and total disability. Claiming the credit also requires you to obtain a statement from your physician certifying that you are permanently and totally disabled.

What are the income limits for the disability credit?   For more info, click this link.  

[LaidupinMT]

Thanks,

Unfortunately, my pension puts me over the income limit.