Disabled and Owe Back Taxes to the IRS?

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Short on Time? Here’s a quick summary of what’s ahead: 

What disabled persons need to know about how to settle back taxes

You’ve contributed to the workforce and paid your taxes for decades. You provided for yourself, your family and contributed to your community. And then, suddenly, you became disabled. With unexpected medical bills and less earnings to cover them, your bills piled up. Financial hardship sets in the moment you realize you cannot afford to pay all your bills. You may need to choose which bills need immediate attention and which debts can hold off.

As a result of your illness, you may have had difficulty in meeting tax deadlines and your tax debt grew. Now you are disabled and owe back taxes. While you can try to get answers from the IRS, you would benefit most by doing your own homework first. It’s not that hard but very important to understand how to settle back taxes if you are disabled. As it stands, there are many tax relief options for disabled individuals who owe back taxes.

Checking into some of those resources will save you time and help you keep the IRS from taking everything you’ve worked for.

Do your homework before you call the IRS and understand tax credits, deductions, and complex laws for a better resolution

Know who you’re dealing with. The IRS is the number one revenue earner for the U.S. government. Collecting tax debt is their priority. Ahead of calling the IRS, be in the know about disability and tax debt resolution. Disabled people are not exempt or hold privileges in any way.

Here are some reasons why disabled people need a keen understanding of disability and tax debt resolution:

  • You may be Eligible for Tax Credits: Disabled individuals may be eligible for tax credits. Ask about credits such as the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC). Learn which apply to you and how to claim these credits.
  • Clear any Confusion around Tax Deductions: Anyone who is disabled should know deductions and exemptions apply to you.  Deductions you can explore include medical expenses, home modifications, or disability-related work expenses.
  • Taxation on Disability Benefits: Know in advance which disability benefits are taxable. Benefits, such as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), should be considered. Recipients may need help understanding how these benefits are taxed.
  • Navigating Complex Tax Laws: Disability related deductions and credits fall under unique tax law. Disability related deductions, credits and benefits are complex. Expert guidance is always advised to gain a better understanding of tax laws for disabled individuals.

These are a few examples of the tax problems that disabled individuals may face. Disabled people deserve expert advice on tax. It’s important to seek professional guidance to explore all available options. This is how you’ll manage unknown tax liabilities and take advantage of tax benefits.

Tax forgiveness will put an end to the overwhelm and anxiety felt by a disabled individual

Why add to your stress by negotiating with the world’s largest debt collector? Allowing the pros to negotiate back taxes for you can be beneficial. Consider the following:

Reduce Your Financial Burden

Back taxes can create a significant financial stress for a disabled person. Paying bills on a fixed income or limited resources adds to the challenge. A professional can put an immediate stop to IRS liens and levies against your bank accounts. Eliminating back taxes can relieve this burden and provide greater financial stability.

Elimination of Penalties and Interest

The IRS is the largest financial resource for our government. They generate revenue by charging penalties and interest on unpaid taxes. These fees add up fast and make it even harder to pay off the debt. When you start the process of eliminating back taxes, these charges are also eliminated, reducing the total amount owed.

Improved Credit Score

Your credit score can suffer from unpaid back taxes. This situation makes it hard to get credit or loans for several years into the future. By eliminating back taxes, you can improve their credit score and financial standing.

Avoidance of Collection Action

Again, the IRS is the largest collection agency in the world. They will take action to collect monies owed. Avoid their collection tactics like wage garnishment, bank levies and property liens. An enrolled agent will assist you with this effort to help you save money.

Reduced Stress and Anxiety

You don’t have to live with the nagging stress and anxiety of being disabled and owing back taxes. By eliminating back taxes, expect to start living your life to its fullest. Before you know it, you’ll enjoy greater peace of mind and reduce your stress levels.

What are some of the tax forgiveness programs for the disabled?

Ready to enroll in a tax forgivenss program for the disabled? It’s important to know your options. If you are disabled and owe back taxes, there are several tax relief options available to you. Here are some suggestions:

  1. Installment Agreement: This is when you set up an installment agreement with the IRS to pay your back taxes over time in monthly payments. Creating a schedule of payments can make it easier for you to manage your tax debt while on disability.
  2. Currently Not Collectible (CNC) Status: If you are unable to pay your back taxes due to financial hardship, you may be eligible for a CNC status. Once you are on CNC status, the IRS will stop collection activity on your account until your financial situation improves.
  3. Offer in Compromise: An offer in compromise is a program that allows you to settle your tax debt for less than the full amount owed. Your tax professional will help you determine if you qualify for an Offer in Compromise. You’ll need to meet certain eligibility requirements. Be ready to show that you are unable to pay your tax debt in full.
  4. Tax Forgiveness Programs: There are several tax forgiveness programs available for disabled taxpayers. Two common programs are the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). These programs can help reduce your tax liability or provide a refund.
  5. Seek Professional Help: If you are getting letters in the mail from the IRS or state, it may be time to hire a tax professional. You’ll want the knowledge of some who helps disabled individuals with tax debt. Not only will they navigate the tax relief options available, they can also help you save money.

The IRS will not leave you alone if you are on disability. If you are disabled and owe back taxes, it’s important to take action. The IRS can and will take collection action against you if you don’t pay. A reputable company, such as The Tax Relief Helpers, has experience working with people who are disabled and owe back taxes. They’re tax attorneys and accountants have been at it for over 20 years. Their team of enrolled agents, accountants and tax attorneys have saved millions of dollars in back taxes owed.

The benefits of tax debt forgiveness for disabled individuals

Once you start on your path to tax debt forgiveness, you’ll begin to experience a significant difference in your new life without owing back taxes. Managing tax debt while on disability can be challenging, but there are several strategies that can make it more manageable.

Here’s a checklist to get started on tax debt forgiveness:

  • Seek Professional Guidance
    Professional guidance can help you feel more comfortable financially. They have a direct line into the IRS and can stop the liens, levies and wage garnishments immediately. You want to understand your options as a disabled person. An agent will guide you through all available options for managing tax debt, and create a plan to address your tax liabilities.
  • Negotiate a Payment Plan
    The IRS may offer payment plans to disabled individuals who are unable to pay their tax debts in full. These plans allow you to make monthly payments over time to pay off your tax debt. A pro can help you negotiate to your benefit.
  • Explore Tax Relief Programs
    Disabled individuals may be eligible for tax forgiveness programs. Research options such as the Offer in Compromise (OIC) program or the Currently Not Collectible (CNC) status. These programs allow people to settle their tax debts for less than the full amount owed or delay collection action if they are unable to pay. It’s important to explore all available tax relief programs and work with a professional to determine if you are eligible. They should also help you apply for these programs hassle free.
  • Tax Credits and Deductions
    As a disabled person you may be eligible for tax credits and deductions. These generally reduce your tax liability. Some options include the Disability Tax Credit (DTC) or the medical expense deduction. The best way to maximize these opportunities and save time is by working with a tax professional.
  • Get Organized
    Keep accurate records and stay organized. You’ll need to refer to all tax-related documents. This also includes creating a budget and setting reminders for important tax deadlines.

These are just a few strategies for managing tax debt while on disability. It’s important to seek professional guidance and explore all available options. You’ll want help creating a plan that works for your unique financial situation.