Katrina has cerebral palsy, but does not qualify for the disability tax credit. During 2020, she earned $75,000 in income working at a facility for disabled children. In order to work, Katrina required full time attendant care that cost $25,000. Of this total, $10,000 was paid for by her employer, and $5,000 by her benefit plan. In addition, Katrina purchased equipment to increase her mobility at work costing $12,000. What is Katrina's maximum claim for the disability supports deduction?

Question

Quizplus · Accepted Answer

Katrina does not qualify for the disability tax credit, but she can claim the disability supports deduction. The maximum claim for this deduction is $22,000, which includes expenses for attendant care, care in a nursing home or group home, and specialized equipment or devices necessary to perform work or education-related tasks. In this case, Katrina can claim a total of $22,000 for attendant care ($15,000 out of pocket plus $10,000 paid by her employer and benefit plan) and $12,000 for equipment, which equals the maximum claim of $22,000. Therefore, the correct answer is C.

Katrina Has Cerebral Palsy, but Does Not Qualify for the Disability