Publication 907 (2023): Tax Highlights for Persons With Disabilities

Publication 907, provided by the Internal Revenue Service (IRS), offers essential tax information for individuals with disabilities and their caregivers. This guide highlights tax changes, deductions, credits, and other benefits designed to support those with disabilities financially.

What is Publication 907?

Publication 907 (Tax Highlights for Persons with Disabilities) is an official IRS resource designed to help individuals with disabilities and their caregivers navigate the specific tax deductions, credits, and benefits available to them.

Key Points Covered in Publication 907

A. Income

  • Clarifies taxable and non-taxable sources of income for persons with disabilities
  • Explains tax treatment for disability benefits

B. Itemized Deductions:

  • Lists eligible medical expenses
  • Details deductions for impairment-related work expenses

C. Tax Credits:

  • Describes the Earned Income Tax Credit (EITC)
  • Provides information on the Child and Dependent Care Credit
  • Covers the Credit for the Elderly or the Disabled

D. Business Tax Incentives:

  • Deduction for removing architectural and transportation barriers for accessibility
  • Disabled Access Credit for eligible small businesses

E. ABLE Accounts:

Outlines the benefits and rules of Achieving a Better Life Experience (ABLE) accounts, which are tax-advantaged savings accounts for individuals with disabilities.

Who is Considered Disabled?

The IRS defines a person with a disability as someone with:

  • A physical or mental disability that functionally limits their ability to work.
  • A physical or mental impairment that substantially limits one or more major life activities (e.g., walking, speaking, seeing, hearing, learning).

Who Benefits from Publication 907

A. Individuals with disabilities, including:

  • Those with physical or mental impairments that limit major life activities
  • Individuals who are blind or deaf

B. Caregivers and family members of individuals with disabilities

C. Tax professionals advising clients with disabilities

For the current year's Publication 907, click here.