Form 8826

Definition

Form 8826 is a tax form used to claim the Disabled Access Credit, which is designed to help businesses offset the costs of making their facilities accessible to individuals with disabilities. This credit is available to small businesses and certain tax-exempt organizations, promoting inclusivity and compliance with the Americans with Disabilities Act (ADA). By utilizing Form 8826, eligible entities can reduce their tax liability while fostering an environment that welcomes all customers.

5 Must Know Facts For Your Next Test

1. Form 8826 allows eligible small businesses to claim a credit up to $5,000 for expenses incurred in making their facilities accessible.
2. The Disabled Access Credit claimed using Form 8826 can cover a range of expenses, including architectural modifications and purchasing adaptive equipment.
3. To qualify for the credit, a business must have gross receipts of $1 million or less or have no more than 30 full-time employees.
4. Form 8826 must be filed with the business's income tax return, and it can be used for improvements made during the tax year.
5. It's important for businesses to keep thorough documentation of all expenditures claimed under Form 8826 to support their credit claims.

Review Questions

• How does Form 8826 facilitate compliance with the ADA for small businesses?
  • Form 8826 helps small businesses comply with the ADA by providing a financial incentive through the Disabled Access Credit. By claiming this credit, businesses can offset the costs associated with making their facilities accessible, thus encouraging them to adhere to ADA standards. This not only benefits individuals with disabilities but also enhances the customer base and public image of the businesses.
• What types of expenses can be included on Form 8826 when claiming the Disabled Access Credit?
  • When using Form 8826, small businesses can include various expenses related to making their facilities accessible. This includes costs for architectural modifications such as ramps or wider doorways, installation of adaptive equipment like wheelchair lifts or grab bars, and even fees for professional services related to accessibility compliance. Understanding which expenses qualify can significantly impact the total credit amount received.
• Evaluate the impact of Form 8826 on promoting inclusivity in business environments and how it relates to broader societal goals.
  • Form 8826 plays a crucial role in promoting inclusivity by providing financial support for businesses seeking to accommodate individuals with disabilities. By incentivizing these modifications through the Disabled Access Credit, it encourages more companies to comply with the ADA, ultimately fostering a more inclusive society. This aligns with broader societal goals of equality and accessibility, as it helps remove barriers that prevent individuals with disabilities from fully participating in public life and accessing services.

Related terms

Disabled Access Credit: A nonrefundable tax credit available to small businesses that incur expenses for making their facilities accessible to persons with disabilities.

Americans with Disabilities Act (ADA): A landmark civil rights law enacted in 1990 that prohibits discrimination against individuals with disabilities in all areas of public life.

Small Business: A privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation.