Glossary

Form 8826 – Disabled Access Credit (reiterated for business-related credits)

Form 8826 offers a Disabled Access Credit to businesses. It covers 50% of accessibility expenses (up to $5,000 annually) for removing architectural/transportation barriers. Eligible businesses have under $1M in gross receipts or 30 or fewer full-time employees. Proper documentation is crucial to avoid penalties. This credit promotes inclusivity.

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Understanding Form 8826 – Disabled Access Credit

Form 8826, also known as the Disabled Access Credit, is a tax credit designed to incentivize businesses to make their facilities accessible to individuals with disabilities. This credit can be claimed by eligible business owners who incur expenses for the removal of architectural or transportation barriers.

Key Features:

Eligible Expenses: Expenses related to providing access for disabled individuals, such as constructing ramps, widening doorways, installing accessible parking, and more.
Credit Calculation: The credit amount is generally 50% of eligible expenses, up to a maximum of $5,000 per year.
Eligibility Criteria: Businesses with gross receipts of $1 million or less or 30 or fewer full-time employees can qualify for this credit.

Filing and Compliance:

To claim the Disabled Access Credit, businesses must file Form 8826 along with their annual tax return. Detailed documentation of the incurred expenses is necessary to support the credit claim. Compliance involves adhering to the eligibility criteria and accurately reporting the expenses.

Penalties for Non-Compliance:

Failure to meet the requirements for claiming the Disabled Access Credit can result in penalties, including disallowance of the credit claim, additional taxes, and potential audit scrutiny.

Importance in Financial Compliance:

The Disabled Access Credit plays a crucial role in promoting inclusivity and accessibility for individuals with disabilities. By offering this tax incentive, the government encourages businesses to invest in accessibility improvements, fostering a more inclusive and accommodating environment for all individuals.

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