Form 8826: Disabled Access Credit
Form 8826, also known as the Disabled Access Credit form, is used by eligible small businesses in the United States to claim a tax credit for expenses incurred to make their business more accessible to individuals with disabilities. This credit is part of the general business credit offered by the Internal Revenue Service (IRS).
Who is Eligible for Disabled Access Credit?
An "eligible small business" for the purposes of this credit is defined as:
A. A business (or person) with gross receipts (including those of any predecessor) not exceeding $1 million in the preceding tax year.
B. OR a business with no more than 30 full-time employees during the preceding tax year (an employee is considered full-time if employed for at least 30 hours per week for 20 or more calendar weeks).
C. The business must also elect to claim the credit by filing Form 8826.
What are Eligible Access Expenditures?
These are the expenses paid or incurred by the eligible small business to comply with the Americans with Disabilities Act of 1990 (ADA) as of November 5, 1990. Some common examples include:
A. Removing physical barriers that prevent access, such as widening doorways, installing ramps, or modifying restrooms.
B. Providing qualified interpreters or other methods of making audio materials accessible to hearing-impaired individuals.
C. Providing qualified readers, taped texts, or other methods of making visual materials accessible to individuals with visual impairments.
D. Removing communication barriers, such as installing Braille signage or providing assistive listening devices.
Missouri Mo Disabled Access Credit (Mo 8826)
The state of Missouri offers an additional tax credit for eligible businesses that claim the federal Disabled Access Credit. This credit applies to a portion of the "eligible access expenditures" that exceed the federal monetary cap. Here's a breakdown:
Credit Percentage: 50% of the amount exceeding the federal cap of $10,250 (as of 2024).
Maximum Credit: $5,000 per tax year.
Non-Refundable & Non-Transferable: The credit cannot be refunded or transferred to another taxpayer.
Carryover Provision: Any unused credit can be carried forward to subsequent tax years.
How to File Form 8826?
Federal Form 8826: Complete and file Form 8826 with your federal tax return.
Missouri Mo 8826: If you are claiming the Missouri credit, complete and file Form Mo 8826 with your Missouri tax return. You will also need to attach both your federal Form 8826 and your Missouri Form Mo 8826.
How much credit can I claim on Form 8826?
The federal credit is equal to 50% of your "eligible access expenditures" up to a maximum of $10,250.
What happens if my eligible access expenditures exceed the federal cap?
If you are an eligible business in Missouri, you can claim an additional credit on Form Mo 8826 for the amount exceeding $10,250, with a maximum credit of $5,000.
What documentation do I need to keep for claiming the Disabled Access Credit?
It's crucial to maintain detailed records of your eligible access expenditures. This includes receipts, invoices, and any professional certifications related to accessibility modifications.
Can I claim the credit for expenses incurred before starting my business?
No, eligible access expenditures must be paid or incurred in the tax year you are claiming the credit.
Where can I get the Form 8826 Disabled Access Credit?
You can download the Form 8826 attached below.