What it means
In the US tax system, most people can claim a standard deduction, which is a fixed amount subtracted from income before tax is worked out. Taxpayers who are 65 or older, or who are blind, are allowed an additional standard deduction on top of the usual amount.
A blind taxpayer who is also elderly can claim both additions. For tax purposes, a person is generally treated as blind if central vision in the better eye, with glasses or contact lenses, is 20/200 or worse, or if the field of vision is 20 degrees or less.
Blindness is tested as at the last day of the tax year, and a taxpayer who is only partly blind needs a statement from an eye doctor. The tax authority publishes the exact rules each year.
The extra deduction applies to the taxpayer and, in a joint return, may also apply to a spouse who is blind. The amounts are set annually and are adjusted for inflation, so people should check the figures that apply to the year in question.
Some countries have similar reliefs under different names. Blindness may also open the way to other benefits, such as medical expense deductions for specialist equipment, braille materials or reading services where the rules allow.
Disability-related income may be taxed differently, and some benefits are not taxable at all. A tax adviser who understands disability rules can often find savings that general software misses.
For employers and finance professionals, the relevance is mainly in payroll and tax planning. Employees can adjust the withholding they give to payroll to reflect the extra deduction, and advisers need to ask the right questions when preparing returns.
Records, such as the eye doctor's statement, should be kept in case the tax authority asks for evidence. Tax software may not prompt for blindness unless the user ticks the right box.
Preparers should therefore ask directly, at the start of the interview, whether the taxpayer or the spouse is blind, as the relief is easy to miss.
In practice
Real-world examples.
Example
A retired teacher is legally blind and files a tax return as a single person. Her accountant adds the additional standard deduction for blindness and, because she is over 65, the age addition as well. Her taxable income falls by enough to move her into a lower tax band. Her accountant also reminds her to keep the doctor's letter for her records.
Example
A married couple files jointly, and the husband is blind. The couple claims the additional deduction for him and uses it to reduce their joint taxable income. They keep a letter from his eye doctor in their tax file.
Example
A self-employed web developer who is blind buys screen-reading software and a braille display for his work. His accountant deducts the equipment as a business expense and also claims the extra standard deduction. He reduces his tax bill twice, through two separate rules.
Formula
Calculation
Taxable income = Gross income - Standard deduction - Additional deduction for blindness
Suppose, purely for illustration, that the standard deduction is $15,000 and the additional deduction for blindness is $2,000. A single blind taxpayer has $60,000 of gross income. Taxable income = 60,000 - 15,000 - 2,000 = $43,000. At a flat illustrative tax rate of 20%, tax = 43,000 x 0.20 = $8,600, which is $400 less than the $9,000 owed on taxable income of $45,000 without the blindness deduction (2,000 x 0.20 = $400).Case study
Seen in the real world.
Calder Financial Planning is a fictional advisory firm that prepared taxes for a client named Mrs Okafor, a retired administrator who had lost most of her sight. For several years she had filed using standard software and had never claimed any additional deduction.
In this illustrative scenario, a new adviser asked about her health during a routine review and found she qualified as blind. The firm filed amended returns for the open years and obtained a refund of $1,350 in total. It also added a question about vision and other disabilities to its client intake form, so that eligible clients would not be missed.
The adviser explained to Mrs Okafor that amended returns can usually be filed only within a limited number of years, so older years might not be claimable. She was grateful for the refund and recommended the firm to friends.
Watch out
Common mistakes.
- Assuming that any vision problem qualifies. The tax definition is strict and usually requires a doctor's statement.
- Forgetting that the additional deduction is separate from the age deduction. Both can apply if the taxpayer qualifies on both grounds.
- Using last year's figures. Deduction amounts are adjusted annually.
Questions
People also ask.
Who counts as blind for tax purposes?
In the US, generally someone whose vision in the better eye is 20/200 or worse with correction, or whose field of vision is 20 degrees or less.
Can the spouse of a blind taxpayer claim anything?
On a joint return, the additional deduction can apply to each spouse who qualifies.
Do I need proof?
You should keep a statement from a qualified eye doctor, as the tax authority may ask for it.
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