Tax Deductions for People With Disabilities Who Receive SSDI or SSI Benefits

If you receive SSDI or SSI disability, you could qualify for a range of tax benefits. These include special deductions that can reduce your taxable income, such as impairment-related work expenses or higher standard deductions for those who are blind or 65 or older.

You might also benefit from special exclusions that reduce the taxable part of your disability benefits. And you could take advantage of special rules for tax-advantaged savings and retirement accounts, which can further reduce your tax burden.

This article explains the key income tax deductions and income exclusions available to people with disabilities, how they work, and where to find help filing taxes to claim these benefits.

Special Deductions for People With Disabilities

First, we'll look at deductions. Tax deductions lower the amount of income that's subject to tax. The more deductions you take, the smaller your taxable income—and the less tax you'll owe.

The amount a tax deduction will save you depends on your top tax rate. For example, if you're in the 12% tax bracket, a $100 deduction will save you $12 in income tax (12% of $100).

Is There a Tax Deduction for Being Disabled?

People with disabilities can benefit from a deduction for money they spend to be able to work, called "impairment-related work expenses," and people with low vision can benefit from a higher standard deduction.

In addition, there's a tax credit for people with disabilities. There are also tax credits and deductions you can take for a disabled dependent. (Learn more in our article on tax credits for the disabled).

Impairment-Related Work Expenses Deduction

The IRS allows you to deduct impairment-related work expenses (IRWE) from any employment income or self-employment income if you have a disability that limits your ability to work or substantially limits a major life activity, such as:

• walking
• breathing
• learning, or
• using your hands.

IRWEs are the costs of disability-related services or equipment that you need to do your work. For example, someone who's hard of hearing could deduct the cost of a text telephone or assistive computer software. People with low vision can deduct blindness-related work expenses (BWE), such as the cost of Braille translation of work materials.

If you earn wages as an employee, you can deduct these expenses only if you itemize your personal deductions on IRS Schedule A, instead of taking the standard deduction. Because legislation has increased the standard deduction, fewer people now claim IRWEs.

You should itemize deductions only if your total personal deductions exceed the standard deduction. If you do itemize, you can deduct the full amount of your unreimbursed impairment-related expenses from your income.

If you're self-employed, you can deduct IRWEs as business expenses on IRS Schedule C. IRWEs are deductible in full. They not only reduce your income taxes, but your self-employment (Social Security and Medicare) taxes as well.

Larger Standard Deduction for the Blind and Seniors

If you're blind or have low vision that the IRS counts as blindness, you qualify for a larger "standard deduction."

Who Qualifies for the Standard Deduction for the Blind?

To qualify for the larger standard deduction for blindness, the IRS uses a definition similar to Social Security's requirement for blindness: you must not be able to see better than 20/200 in the better eye with glasses or contact lenses, or your field of vision must be 20 degrees or less.

What Is the Standard Deduction?

The standard deduction is the dollar amount you're allowed to deduct each year to account for personal expenses such as medical expenses, home mortgage interest and property taxes, and charitable contributions. You take the standard deduction instead of totaling up and deducting your actual personal expenses.

The amount you're allowed to deduct depends on your filing status and is adjusted for inflation each year. For the 2026 tax year, the standard deduction for a single person is $16,100. The standard deduction for a married couple filing a joint tax return is $32,200.

How Much Is the Blind Standard Deduction?

If you're blind, you get an additional deduction of $2,050 for the 2026 tax year. So if you're single, your standard deduction would be $18,150 for 2026. But if you're blind and married, each spouse who is blind gets only a $1,650 increase, for a total standard deduction of $35,500 for a blind couple in 2026.

If you're over 65 and blind, you get an even higher standard deduction.

Here are the figures for the 2026 tax year:

Note: The deductions shown above aren't subject to income limits. A new, temporary bonus deduction for taxpayers 65 and older, which does have income limits, is explained in the next section.

What Are the Extra Standard Deductions for Seniors?

If you're 65 or older, you qualify for an extra standard deduction on top of the regular standard deduction. If you're single, that amount is $2,050, and if you're married, each spouse 65 or older can claim $1,650. Recent legislation made this extra senior deduction permanent (it had been set to expire after 2025).

The same law also created a temporary bonus deduction for seniors. Starting with the 2025 tax year, taxpayers 65 and older can deduct an additional $6,000 per person, subject to income limits (it phases out above $75,000 for singles and $150,000 for joint filers). All eligible seniors can claim the full amount, whether filing single or married filing jointly. (Pub. L. No. 119-21, § 70103, 139 Stat. 72.)

So, if you're single and you meet the new, temporary deduction's income limits, you get the $2,050 permanent senior deduction plus the $6,000 temporary deduction, for a total of $8,050. If you're married and both spouses are over 65, you can each claim $1,650 plus $6,000, for up to $15,300 in senior deductions. The $6,000 deduction expires after the 2028 tax year unless Congress extends it.

What if you're blind and over 65? You can take the blindness deduction in addition to the senior deductions. For example, a single filer who is 65 or older, blind, and under the income limits for the temporary deduction can claim $10,100 ($6,000 + $2,050 + $2,050) in extra deductions in 2026, bringing their total deductions up to $26,200 ($10,100 + $16,100).

If your total income is less than your total deductions, you generally aren't required to file a tax return. However, you must file to request tax credits or to get a refund of any taxes you've already paid.

Exclusions From Income for People With Disabilities

Next, we'll look at exclusions: income that you don't need to include on your tax return.

SSI Benefits Are Excluded From Income Entirely

All of your Supplemental Security Income (SSI) benefits are excluded from your income, making them not taxable. You shouldn't include SSI benefits in your income when you prepare your tax return (if you're required to file a return).

SSDI Benefits Are Partly Excluded From Income

When figuring your federal taxes, you can exclude half of your Social Security disability insurance (SSDI) benefits from your income. But part of your SSDI could be taxable—if you (and your spouse) earn enough income in addition to your benefits.

To know whether you might be subject to income taxes, you have to figure out your combined income. To do this, add one-half of the total Social Security benefits you received during the year to all your other income. If your combined income exceeds $25,000 (for single filers) or $32,000 (if you're married), you'll have to pay taxes on part of your benefits.

The actual amount of income tax you have to pay on your benefits depends on your top "marginal" tax rate. For most people receiving SSDI, the top rate would be 10% to 22%. Many states also totally or partially exclude SSDI income from state income taxes. For more information, see our articles on federal taxation of Social Security benefits and state taxation of Social Security benefits.

Tax-Advantaged Accounts for People With Disabilities

The IRS has special rules for people with disabilities who need to withdraw money early from their retirement accounts, and also supports a relatively new tax-advantaged savings account for people who were disabled by age 46.

ABLE Accounts for People With Disabilities

ABLE accounts (named for the Achieving a Better Life Experience Act) are special tax-advantaged savings accounts for people with disabilities. If you became blind or disabled before age 46, you can establish an ABLE Account, or others can do so on your behalf.

Contributions to an ABLE account don't affect your eligibility to receive SSI, SNAP (food stamps), or Medicaid benefits, which are usually available only to people with financial assets of $2,000 or less. (But you'll lose your eligibility to receive SSI cash benefits if you happen to save more than $100,000 in your ABLE account.)

Contributions to ABLE accounts aren't federally tax-deductible, but some states allow a full or partial deduction against the state income tax, including:

Check with your state's department of revenue to see if your state offers an ABLE tax deduction.

The money in your ABLE account or any interest it earns isn't taxed. You can withdraw the money in your account at any time, tax-free, to pay for the following expenses:

• education
• housing
• transportation
• employment training and support
• assistive technology
• personal support services (such as home health aides)
• health care expenses
• financial management and administrative services
• legal fees, and
• funeral expenses.

For more information, see our article on ABLE savings accounts.

Special Retirement Plan Rules for People With Disabilities

Generally, if you take a distribution from a retirement plan before you turn 59 ½, you'll have to pay a penalty of 10% for "early distribution"—in addition to paying regular income tax. Fortunately, individuals with qualifying disabilities are exempt, meaning they don't have to pay the 10% early distribution penalty.

The IRS gives a break to people who are totally and permanently disabled and need to take money out of IRAs, 401(k) plans, and other qualified plans, or SEP, SIMPLE IRA, and SARSEP plans. For more information, see our article on the disability exception to the early distribution tax.

Where to Get Tax Filing Help When Claiming a Tax Deduction for Disability

People with disabilities, seniors, and their families can get help filing their taxes and claiming the special income exemptions, tax credits, and tax deductions they're entitled to. Each tax filing assistance program has specific eligibility rules, and income limits sometimes apply.

Two IRS-led programs, the Volunteer Income Tax Assistance (VITA) program and Tax Counseling for the Elderly (TCE), are operated by non-profit organizations and staffed by IRS-certified volunteers at community centers and other locations across the country.

Volunteer Income Tax Assistance. Free tax counseling and services provided by VITA are available to those who:

• earn about $69,000 or less
• have a disability, or
• need language support.

Virtual VITA programs offer online assistance for those who are housebound or live in rural areas. And some local VITA programs provide IRS-approved tax software through a Facilitated Self-Assistance (FSA) option.

With the self-service option, you use the software to prepare and file your taxes yourself—either at a VITA site or in your own home—while IRS-certified volunteers are available onsite and through the software to answer questions and review your entries.

Find a VITA program near you using the VITA program finder tool or by calling 800-906-9887.

Tax Counseling for the Elderly. TCE offers free help filing taxes to those 60 or older, but there's no income limit. Find a TCE program using the AARP's Tax Aid Locator tool or by calling 888-227-7669 (January-April only).

United Way. The United Way offers another way to file taxes with help. Through MyFreeTaxes.com, you can file online yourself, with free help when needed, or have your taxes prepared for you in person or online by the United Way.

IRS Direct File. If you don't need much support, you can use the IRS website to submit your tax return. With IRS Direct File, you can file your taxes directly with the IRS for free (available in 25 states). And IRS Free File, which is available everywhere, allows you to file your taxes for free using guided software or fillable forms. Learn more about both of these IRS's free tax filing options.