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Disability Rights California

January 15, 2009

tipsIt's that time of year again

Here is some tax information that may be of interest to people with disabilities

By Dan Brzovic

California programs - Federal programs

California Programs

  1. California renter's and homeowner's income tax credits.

This program is administered by the Franchise Tax Board (FTB). Information about this program, and forms, can be found on the FTB website at this link: http://www.ftb.ca.gov/individuals/hra/. Note: This program is not available for 2008.

  1. California property tax postponement program.

This program is administered by the State Controller's office. Information about this program, and forms, can be found on the Controllers website at this link: http://www.sco.ca.gov/col/taxinfo/ptp/index.shtml.

  1. California Disabled Access income tax credit for small businesses.

This program is administered by the Franchise Tax Board. It is similar to the federal Disabled Access Credit, but limited to $125 per eligible small business, and based on 50% of qualified expenditures that do not exceed $250. In effect, it provides a credit for expenditures up to $250 that do not qualify for the federal credit.

The 2008 form and instructions for this program can be found on the 2008 FTB forms webpage at this link: http://www.ftb.ca.gov/forms/2008/alpha_index.shtml. Scroll down to: Disabled Access Credit for Eligible Small Businesses - 3548

Federal Programs

The IRS has a useful website that groups information about tax benefits for people with disabilities in one place. Here is the link: http://www.irs.gov/individuals/article/0,,id=168606,00.html.

Here is a list of the principal federal programs:

  1. Income tax credit for seniors or persons with disabilities.

  2. Income tax deductions for seniors or persons with disabilities, including:

    • Higher standard deduction
    • Certain disability-related payments
    • Impairment-Related Work Expenses
    • Medical Expenses
  3. Disabled Access Credit for small businesses.

This is an income tax credit for eligible small businesses on 50% of qualified expenditures that exceed $250 and do not exceed $10,000. Qualified expenditures are expenditures that are necessary for compliance with ADA access requirements.

  1. Federal Earned Income Tax Credit (EITC) for individuals.

EITC is a refundable federal income tax credit for low-income working individuals and families. Information about the EITC, and forms, can be found on the IRS website at this link: http://www.irs.gov/individuals/article/0,,id=96406,00.html.

  1. Work Opportunity Credit for employers.

This is an income tax credit for employers who hire certain employees. The following eligibility groups may include individuals with disabilities:

  • Qualified Veteran. Includes "disabled veterans" who are entitled to compensation for a service-connected disability and who, during the one-year ending on the hiring date, were: a) discharged or released from active duty in the U.S Armed Forces, or b) unemployed for a period or periods totaling at least 6 months.
  • Vocational Rehabilitation Referral. An individual who completed or is completing rehabilitative services from the California Department of Rehabilitation (DOR) or a similar agency in another state, an Employment Network, or the U.S. Department of Veterans Affairs;
  • Qualified Ex-Felon. An individual who has been convicted of a felony and has a hiring date which is not more than one year after the last date on which he was so convicted or released from prison;
  • SSI Recipient. A recipient of Supplemental Security Income (SSI) benefits for any month ending during the past 60 day period ending on the hire date.
Information can be found on the U.S. Department of Labor website at the following link: http://www.doleta.gov/business/incentives/opptax/.