The Hidden Advantages of Being Legally Blind: Tax Benefits You Need to Know About

Being legally blind doesn`t just mean facing challenges in daily life; it also comes with certain benefits, especially when it comes to taxes. As who visually impaired, may entitled range tax deductions credits can reduce tax burden. In blog post, explore tax benefits available legally blind how can them advantage.

Understanding Basics

First foremost, important understand means legally blind eyes IRS. According to the IRS, an individual is considered legally blind if their visual acuity is 20/200 or less in their better eye with the use of corrective lenses, or if their visual field is 20 degrees or less. If you meet these criteria, you are eligible for a range of tax benefits that can help offset the costs associated with your visual impairment.

Maximizing Tax Benefits

One of the key tax benefits available to the legally blind is the increased standard deduction. For the 2021 tax year, the standard deduction for a single individual is $12,550. However, if you are legally blind, you are entitled to an additional standard deduction of $1,700, bringing your total standard deduction to $14,250. This can result in significant tax savings, especially if you are filing as a single individual.

Example:

Let`s consider an example to illustrate the impact of the increased standard deduction. Jane, legally blind, earns $30,000 annual income. Without the additional standard deduction, her taxable income would be $30,000 – $12,550 = $17,450. However, with the increased standard deduction, her taxable income would be $30,000 – $14,250 = $15,750. This results in a tax savings of $170, assuming a tax rate of 10%.

Other Tax Benefits

In addition to the increased standard deduction, there are other tax benefits available to the legally blind, such as the Child and Dependent Care Credit, the Elderly or Disabled Credit, and the Earned Income Tax Credit. These credits can help offset the costs of care for dependents and provide additional tax relief for individuals with low to moderate income.

Navigating tax code challenging anyone, especially daunting visually impaired. However, by understanding the various tax benefits available and how to maximize them, you can significantly reduce your tax burden and improve your financial situation. If you are legally blind, be sure to consult with a tax professional to ensure you are taking full advantage of all the benefits available to you.

Legally Blind Tax Benefits Contract

Below is the legally binding contract outlining the tax benefits for individuals who are legally blind.

Whereas the Taxpayer is legally blind and eligible for certain tax benefits under the laws of the United States, and the IRS is the federal agency responsible for administering and enforcing tax laws;

Now, therefore, in consideration of the mutual covenants and agreements set forth herein, the Taxpayer and the IRS hereby agree as follows:

1. Taxpayer shall provide IRS proper documentation verifying legal blindness, defined Social Security Administration applicable government agency.
2. IRS shall recognize Taxpayer`s legal blindness provide necessary tax benefits, including limited increased standard deduction potential eligibility certain tax credits.
3. Taxpayer agrees accurately report income expenses, accordance tax laws regulations, promptly inform IRS changes legal blindness status.
4. IRS agrees maintain confidentiality Taxpayer`s information process tax returns timely manner.
5. This contract shall governed laws United States disputes arising relating contract shall resolved arbitration accordance rules American Arbitration Association.

IN WITNESS WHEREOF, the parties have executed this contract as of the date first written above.

Top 10 Legal Questions About Legally Blind Tax Benefits