As per the Americans with Disabilities Act (ADA), businesses and nonprofit organizations that serve the public are required to provide auxiliary aids and services when needed to communicate effectively with people who have communication disabilities. The ADA requires that the person with a vision, hearing, or speech disability can communicate with, receive information from, and convey information to, the covered entity.
Practice owners can claim the Disabled Access Credit (DAC) based on 50% of the eligible expenditures incurred during the year that exceed $250, up to a maximum tax credit of $5,000. Qualified DAC expenses include those “to provide qualified interpreters or other effective methods of making aurally delivered materials available to individuals with hearing impairments”. If you incur these types of expenses, be sure to remind your Client Manager which vendors you paid during the year to provide translation services so we can complete and attach a Form 8826 to your federal tax return to calculate this valuable tax credit.
Remember, a tax credit is a dollar-for-dollar reduction in your tax liability and is generally more valuable than a tax deduction which saves you taxes based on your marginal tax rate.