Get Up to $5K Back on Your Tax Return by Making Your Optometric Practice ADA-Friendly

The Disabled Access Credit: Tax Relief for Optometric Practices Improving Accessibility

The IRS offers a tax credit to help small businesses like optometric practices cover costs associated with improving accessibility for disabled employees or patients. This is known as the disabled access credit. Here’s what optometric practice owners need to know about claiming this credit:

Who Qualifies?

To qualify for the disabled access tax credit as an optometric practice, you must:

• Have had gross receipts of $1 million or less in the previous tax year

OR

• had 30 or fewer full-time employees

AND

• Elect to claim the credit by filing Form 8826

What Expenses Qualify?

The credit can be claimed on “eligible access expenditures” incurred to comply with the Americans with Disabilities Act. For an optometric practice, this may include expenses like:

• Removing physical barriers preventing access for disabled individuals

• Offering interpreters/audio materials for hearing-impaired patients

• Providing readable formats for visually impaired patients

• Purchasing or modifying accessible equipment

The expenditures must be reasonable and necessary to accomplish the above purposes.

The Disabled Access Credit does not cover expenditures for facilities first used after November 5, 1990, focusing instead on aiding accessibility improvements in older buildings.

Claiming the Credit

As an optometric practice owner, inform your CPA about any accessibility-related equipment purchases or modifications you made so they can determine eligibility and ensure you claim the full disabled access tax credit when filing your return.

The credit covers 50% of eligible access expenses over $250 for a maximum credit of $5,000. Track qualifying expenses to get the full credit you deserve.

Restrictions

Expenses claimed for this credit cannot also be deducted or capitalized for taxes. This prevents double-dipping on tax benefits.

Meeting both eligibility criteria and documenting qualifying expenses properly is key to successfully claiming this credit. This credit exists to help minimize the significant expenses of increasing access and usability for disabled patients.

Additional Tax Deduction

Businesses can also claim the Barrier Removal Tax Deduction for expenses incurred to remove barriers limiting mobility for disabled individuals. Qualifying small and large businesses may deduct up to $15,000 annually as an expense for eligible accessibility improvement costs that are typically capitalized. To use this deduction, practices should list it as a separate accessible-related expense when filing income taxes. Notably, it can be used together with the Disabled Access Credit in a single tax year.

Need Help?

The tax experts at Refractional CFO specialize in helping optometric practices secure every tax credit and deduction available so you keep more of your hard-earned money. We handle navigating all complex paperwork and compliance requirements behind the scenes while maximizing your tax benefits. If you have any questions or want to discuss how we can reduce your tax obligations, please book a free 15-minute consultation. We would be happy to chat with you about tailoring a plan for your practice's unique needs and goals.