Q. My daughter is fully disabled and gets 24/7 care I was told she gets a disabled tax credit but how do I do it?
A. That's basically not true.
If she is your dependent, there is no additional credit for having a disabled dependent. Her disability only means that she can continued to be claimed as a "Qualifying Child" dependent, regardless of her age. In addition to the (up to) $500 Credit for other dependents, she qualifies you for additional Earned Income Credit. If she is over 16, she does not qualify you for the child tax credit or additional child tax credit.
If she files her own tax return, there is a credit for the elderly or disabled (you don't have to be both). But because it has not been adjusted for inflation since 1983, very very few people qualify. If she qualifies, TurboTax (TT) will automatically calculate it. It goes on Schedule 3, line 6d (2022-3). It is not a refundable credit. That is, you must have a tax liability to offset to get the credit. Very few people, with that little income have an actual tax to offset.
Having any social security income at all works against you. Essentially your potential credit is reduced by any tax you "shoulda paid” on the untaxed Social security income. If you have more than $5000 social security ($7500 Married Filing Jointly and both are elderly or disabled) or VA benefits you will not qualify for the credit.
If you think you qualify, and TT missed it, In TurboTax (TT), enter at:
Federal Taxes Tab
Deductions & Credits
-Scroll down to:
--Other deductions & Credits
-Elderly or Disabled credit
See schedule R for detailed calculations. https://www.irs.gov/pub/irs-pdf/f1040sr.pdf
A simplified rule of thumb is: if you have earned a social security benefit, including SSDI, you won't qualify for the Credit for the Elderly and Disabled.
