Vol. 7, No. 1 Winter 1999	Previous Issues Subscribe to AT Messenger Download PDF Viewer
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Tax Deductions and Credits for Assistive Technology

The means to obtain assistive technology for people with disabilities can be improved through the use of tax advantages. The most common and flexible deductions impacting people with disabilities are those available to all taxpayers: deductions for medical, dental or other health care expense and miscellaneous work expenses. AT is deductible under the definition of medical care, which includes amounts paid "for the diagnosis, care, treatment or prevention of disease or for the purpose of affecting any structure or function of the body." This definition, therefore, has significant potential for people with disabilities who use assistive technology.

Other tax provisions enable individuals with disabilities who are employed to deduct work related expenses, i.e. assistive technology, from their gross incomes when it is needed to maintain employment.

Another tax advantage is available as a tax credit when the expenses incurred by a taxpayer for the care of a dependent who has one or more disabilities frees the taxpayer to work.

Initial areas to investigate and/or discuss with your tax preparer include:

• Medical Care Expense Deductions
• Credit for Architectural and Transportation Barrier Removal
• Targeted Tax Credits
• ADA Credit for Small Businesses
• Health Insurance Portability and Accountability

These and other tax advantages are available which may offset some or all of the costs of assistive technology for people with disabilities, their families, and their employers.

For further information, contact the Internal Revenue Service or discuss these options with your tax preparer. An excellent resource to assist in personal pursuit of tax options is Tax Options and Strategies for People with Disabilities, by Steve Mendelsohn. To obtain a copy contact: Demos Publications, 386 Park Avenue South, Suite 101, New York, NY 10016 (212) 683-0072.

This article was reprinted from Great Possibilities, Vol. 3, Issue 1, (Fall 1998) with permission from Louisiana Assistive Technology Access Network.