Category: Uncategorized

What Tax Breaks Are Available to Someone Who Has a Disability in Arizona?

Arizona law provides for a few tax exemptions and credits for those who have disabilities, including a fairly sizable property tax exemption. Understanding tax credits, deductions, and other benefits that may apply to you can help you maximize your income and cover costs such as medical expenses.

Property Tax Exemption

One of the largest potential tax breaks for someone who has a qualifying disability is the property tax exemption. This exemption allows you to save money on the property taxes you would otherwise owe on your real estate property, manufactured home, or vehicle.

Eligibility for Property Tax Exemption

To be eligible for a property tax exemption, you must meet some criteria. First, you must have a total and permanent disability or be an honorably discharged veteran with a disability. Widows and widowers also qualify for these same exemptions without regard to disability.

Qualification for this exemption based on a disability requires certification. A licensed professional must document the fact that you are permanently disabled mentally or physically in such a manner that you are unable to engage in sustained work. “Permanent” means that the disability is expected to last at least 12 months or is expected to be terminal within 12 months. You have to file an ADOR form each year to confirm the disability. The first year, you must also file an affidavit of eligibility, and whether you have to file this affidavit each year depends on your county.

Disabled veterans do not have to have a complete disability. They can receive a partial exemption based on the percentage of their disability. Counties may require that veterans submit a Benefit Summary Letter from the VA along with their initial affidavit when applying for this tax break.

This tax break may also be limited by income. In 2023, the maximum income you could have to receive this benefit was $36,077 if you had no minor children and $43,733 if you had minor children or dependent children of any age with a disability. Income thresholds change every year, so you should always check with your county assessor’s office.

Amount of Property Tax Exemption in Arizona

The maximum allowed property tax exemption also changes every year. As of 2023, it was $4,375. This amount can be allocated to property tax for real estate, including a home and land, manufactured housing, and vehicles.

Some Other Tax Exemptions and Benefits

The property tax exemption can help you save thousands each year if you qualify. However, there are some other potential tax exemptions and deductions you may want to leverage to save money in Arizona if you are disabled.

Exemption From Sales Tax on Medical Equipment

You may not have to pay sales tax on medical devices and equipment that you need due to your disability. Devices that are eligible for this sales tax exemption include:

• Vision correction devices, including eyeglasses and contacts
• Prescribed prosthetics
• Durable medical equipment, which can include items such as walkers or wheelchairs
• Insulin and related supplies
• Medical oxygen and related equipment

Other equipment may also be eligible for this tax break if it qualifies as “only useful to assist a qualified individual to become more independent and functional.”

To qualify for this sales tax credit, you must be:

• A person with a physical disability that has a relevant diagnosis and a mental or physical condition that substantially limits at least one major life activity
• A person with a qualifying developmental disability as defined by Arizona law
• A person with a head injury that causes a total or partial disability

Vehicle License Tax Exemption

You can claim an exemption on the vehicle license tax for a single vehicle if you receive any other type of public funds as benefits related to a disability under Title 16 of the Social Security Act. You will need to provide documentation of those benefits to claim this tax exemption.

Arizona ABLE Accounts

Arizona ABLE accounts allow qualifying individuals to save money without impacting other benefits. The disabled person or their loved ones can contribute to the account without impacting SNAP or Medicaid benefits, and SSI benefits are not impacted as long as the account balance is $100,000 or less.

You can also deduct a portion of the amount you contribute to Arizona ABLE accounts from your taxable income for state income tax purposes. A single person can deduct up to $2,000, and anyone filing jointly as a married couple can deduct up to $4,000 in contributions.

Money in Arizona ABLE accounts must be spent on Qualified Disability Expenses. Examples of expenses that qualify include housing, medical and legal bills, education, transportation, basic living expenses such as food, and assistive technology.

How a Disability Attorney Can Help

Applying for and following up on disability benefits can become a daunting task, especially if you’re denied benefits even with a qualified disability. An experienced disability attorney can help you understand your benefits and rights and fight for your interests. If you’re dealing with claims denials and other barriers to accessing disability benefits you believe you qualify for, consider talking to a lawyer about your options. The team at Roeschke Law, LLC, can help. Give us a call at 800-975-1866 to find out more.

If you have done any research on getting approved for Social Security disability benefits, it is very likely that you may now have more questions than answers. While requirements for Social Security disability benefits approval are specific, they are also complex and extensive. For instance, did you come across the phrase “substantial gainful activity?” It is likely that you did as this is a prominent feature of determining Social Security disability benefits eligibility.

What is Substantial Gainful Activity? 

In order to be eligible for Social Security disability benefits, you must be unable to perform more than a minimal amount of work. More specifically, the Social Security Administration (SSA) requires that a disability applicant be unable to perform “substantial gainful activity.”  “Substantial gainful activity” is used to describe work activity and earnings levels. “Substantial” work means that it involves performing notable physical, mental, or a combination of physical and mental activity. “Gainful” work is that which is paid for, that which is generally paid for, or that which is intended for profit, even if profit is not realized.

If, when looking at your substantial gainful activity, the Social Security Administration (SSA) determines that you earn more than a certain amount and are engaging in productive work, it is likely that it will be determined that you are engaging in substantial gainful activity and will, therefore, likely be denied disability benefits.

Generally speaking, substantial gainful activity is work that generates a certain dollar amount each month. The SSA will look to see what you are earning and, if you are earning below a certain threshold amount, you will not be automatically denied benefits. In 2021, this amount was $1,310 for non-blind disability applicants and $2,190 for blind disability applicants. Low earnings alone, however, will not prove to the SSA that you cannot engage in substantial gainful activity. The SSA will also look to activities that are volunteer, or even criminal, in nature. If these activities involve substantial work that someone may ordinarily be paid for, the SSA may find that you can, in fact, engage in substantial gainful activity.

Conversely, even those applicants with higher earnings may not automatically be disqualified on the basis of the ability to engage in substantial gainful activity. The applicant must be able to prove that he or she was working under special conditions and that is the reason for the higher earnings. For instance, the claimant may assert that the work required special assistance from other employees, only specially arranged circumstances permitted the ability to engage in the work, frequent rest breaks were allowed, or some other extenuating circumstance allowed the applicant to engage in substantial gainful activity that he or she may have otherwise been unable to engage in.

Disability Attorney

For answers to your disability application questions, turn to us at Roeschke Law. We are not only here to help you understand the Social Security disability process, but also to successfully navigate the process. Contact us today.