Per IRS, to claim a dependent as disabled for tax purposes,
it has to be permanent and
totally disabled.
First, a doctor MUST certify that your daughter's condition has lasted, or is expected to last, for a year or more, or your condition is expected to lead to your death. Get the certification in writing and keep it with your permanent paperwork.
Second, your daughter must be unable to "engage in any substantial gainful activity" because she is mentally or physically unable to do so. Your doctor will usually tell what activities she can handle during your disability.
To defines "Substantial gainful activity", here are some guidelines:
- If you hold down a job, are paid at least the minimum wage, and you work at the job regularly, your work is considered to be "gainful." However, your work isn't substantial unless it's productive work other people would receive pay for doing. For example, if you go to work for a trial period after a period of disability and your employer assigns you light, nonproductive work, you're not doing "substantial work."
- If you do volunteer work regularly and the work is of the type someone usually pays to have done, you are probably performing a "substantially gainful" activity and aren't permanently and totally disabled.
-If you hold down a job but work only when your mental or physical condition allows you to work, your work probably fails the "substantial" test, no matter what you're paid.
