Lower-wage workers with disabilities and families that are raising children with disabilities face profound challenges. Finding transportation to and from a job may be costly and difficult to arrange. Out-of-pocket health care expenses may be higher than for other families. Securing child or adult day care for a family member with special needs may pose a financial burden. The EITC and CTC can provide a vital income boost to help with these expenses.
CONNECT WITH
- Disability advocates
- Disability Resource Coordinators
- State agencies for vocational rehabilitation, supported employment, supported living, mental health, or intellectual or developmental disabilities
- American Job Centers
STRATEGIES
1. Make sure free tax filing assistance sites are accessible.
Modify existing tax assistance sites for people with disabilities. If existing sites aren’t accessible, consider a mobile tax assistance site or home visiting program as alternatives.
2. Reach out to people with disabilities entering the workforce.
The Disability Employment Initiative improves state and local coordination among disability employment and training programs and establishes community partnerships to better serve people with disabilities. Disability Resource Coordinators and American Job Centers can include tax credit information in discussions with people seeking employment.
3. Inform families with a member who has disabilities about special tax credit rules.
Workers who receive long-term, employer-paid disability benefits and are under the minimum retirement age can qualify for the EITC and CTC, even if they didn’t work during the year. These benefits are considered earned income. (Social Security Disability Insurance, SSI, and military disability pensions are not earned income.)
Let families know that a child of any age with a permanent and total disability can be claimed for the EITC. Workers who have a severe disability or are raising a child with a severe disability can claim the tax credits and continue to receive public benefits.
4. Share information about the 2021 expanded Child Tax Credit and Earned Income Tax Credit.
The 2021 American Rescue Plan included multiple temporary one-year tax credit changes. The 2021 expanded Child Tax Credit is worth up to $3,600 for each child under 6 years old, and $3,000 for each child between 6 and 17 years old. The 2021 expanded EITC is worth up to $1,500 for workers not raising children or up to $6,700 for workers raising children in their home.
People who were eligible for the 2021 expanded Child Tax Credit or the 2021 expanded Earned Income Tax Credit and didn’t claim them can file a 2021 tax return by April 18, 2025. Click here to learn more about filing prior year taxes.
ADDITIONAL RESOURCES
- Free Tax Prep for People with Disabilities Resources – National Disability Institute
- Ticket to Work Service Provider Locator – Social Security Administration Program helps Social Security disability beneficiaries make informed choices about work.
- Directory of Centers for Independent Living and Associations – Independent Living Research Utilization
- Consortium for Citizens with Disabilities Member Organizations Contact state or local affiliates
- Financial Capability of Adults with Disabilities 2018 Report – National Disability Institute
