For individuals living with disabilities and their families, managing long-term financial stability while maintaining access to public benefits can be challenging. Fortunately, the IRS offers a range of tools and tax advantages—most notably ABLE (Achieving a Better Life Experience) accounts—to help support financial growth, independence, and peace of mind.
An ABLE account is a tax-advantaged savings account created specifically for individuals with disabilities. It allows eligible individuals to save money without risking access to crucial government benefits like Supplemental Security Income (SSI) or Medicaid.
These accounts offer individuals and families a way to plan for the future while ensuring that day-to-day needs are met.
The IRS also provides several tax breaks and credits to further ease the financial burden for individuals with disabilities and their caregivers:
If you spend a significant amount on healthcare, you may be able to deduct unreimbursed medical expenses that exceed a certain percentage of your Adjusted Gross Income (AGI). These expenses may include:
This refundable tax credit is available to eligible low-to-moderate-income workers, including those with disabilities. Even if you don’t owe income tax, the EITC can result in a refund.
Families who pay for care for a dependent with disabilities may qualify for this credit to offset the cost of daycare, adult day care, or similar services that allow the caregiver to work or attend school.
If you renovate your home to accommodate a disability (e.g., installing ramps, grab bars, or widening doorways), you may be able to deduct these expenses as medical costs.
While ABLE accounts are federally authorized, they are administered at the state level. That means:
👉 It’s essential to check your state’s ABLE program for specific guidelines, or visit www.ablenrc.org to compare programs across the country.
ABLE accounts and IRS tax benefits represent a powerful combination of financial tools for individuals with disabilities. By understanding and leveraging these resources, families can build savings, plan for the future, and reduce their overall tax burden—all without sacrificing critical public assistance.
For detailed guidance, it’s always recommended to consult a qualified financial advisor or tax professional—especially to understand state-specific benefits and ensure full compliance with IRS regulations.
