Persons With Disabilities & Limited Incomes RP-459-c
The Persons with Disabilities & Limited Incomes Exemption or Low Income Disabled Exemption is a tax exemption applied to the County/Town tax bill and possibly the School & applicable Village tax bills. You cannot receive the low income disability exemption if the income of the owner, or the combined income of all the owners, exceeds $37,400. If you are married, the income of your spouse must be included in the total unless your spouse is absent from the residence due to a legal separation, divorce or abandonment.
The Town of Cheektowaga is currently reviewing the income earned in 2021 for the 2023-2024 tax year.
Income includes:
- all Social Security payments, salary and wages (including bonuses)
- interest (including nontaxable interest on state or local bonds)
- total dividends, net earning from farming, rentals, business or profession (including amounts claimed as depreciation for income tax purposes – see ORPTS Opinion of Counsel 5-30)
- income from estates or trusts
- gains from sales or exchanges
- the total amount received from governmental or private retirement or pension plans
- annuity payments (excluding amounts representing a return of capital)
- alimony
- unemployment insurance payments
- disability payments
- workers compensation
- Individual Retirement Account (IRA) contributions
- earnings on IRAs
- veteran’s compensation (exceptions for County, Town & Cheektowaga Central)
- etc.
Income does not include:
- supplemental Security Income
- welfare payments
- gifts
- inheritances
- payments received as participants in the Federal Foster Grandparents Program
- a return of capital
- reparation payments received by Holocaust survivors
- distributions from IRAs***
***An IRA distribution is not counted if the return on capital (interest, dividends, capital gains) is provided. If we are unable to determine what is return on capital (interest) or return of capital (distribution), the entire distribution will be considered income.
Residency requirements – The property must be the “legal residence” of the disabled person and must be occupied by that person unless he or she is absent from the property while receiving health-related services as an inpatient of a residential health care facility (a residential health care facility is a nursing home or other facility that provides lodging, board, and physical care including, but not limited to, the recording of health information, dietary supervision, and supervised hygienic services)
The property also must be used exclusively for residential purposes. If a portion of the property is used for other than residential purposes, the exemption will apply only to the portion that is used exclusively for residential purposes.
Ownership requirements – All of the owners must be persons with disabilities. Exceptions are made in cases where the property is owned by husband and wife, or by siblings. In those cases, only one needs to have a disability.
Life estates and trusts – The life tenant is entitled to possession and use of the property for the duration of his or her life and is deemed the owner for all purposes, including taxation. The exemption also may be allowed if the property is in trust and all the trustees or all the beneficiaries qualify.
School-age children – If you have children living in your home and attending public school, you generally are not eligible for the Exemption for Persons with Disabilities. If the child attends a private or parochial school, you can still receive the exemption.