Form 8826 can be used by eligible small businesses to claim the disabled access credit, a part of the general business credit. This form details instructions and definitions related to the credit and outlines the size requirements and eligible access expenditures for businesses seeking the credit.
What is Form 8826?
Form 8826, also known as the Disabled Access Credit Form, is used by eligible small businesses to claim the disabled access credit as part of the general business credit. Eligible small businesses are those with gross receipts for the preceding tax year that did not exceed $1 million or had no more than 30 full-time employees during the preceding tax year. Eligible access expenditures are amounts paid or incurred by the business to comply with applicable requirements under the Americans With Disabilities Act of 1990. These expenditures must be reasonable and necessary to remove barriers that prevent a business from being accessible, provide audio and visual materials, and acquire or modify equipment or devices. Eligible access expenditures cannot be in connection with any facility first placed in service after November 5, 1990. For an individual, a disability means a physical or mental impairment that substantially limits one or more major life activities. In the case of multiple members of a controlled group or business under common control, each member’s credit must be figured based on a proportionate share of the group’s credit.
IRS Form 8826 – Who Needs to Fill It Out?
Form 8826 must be filled out by eligible small businesses looking to claim the disabled access credit as part of the general business credit. This form cannot be filled out by partnerships or S corporations unless their only source of this credit comes from pass-through entities, in which case the credit can be reported directly on Form 3800. An eligible small business is one with gross receipts (minus returns and allowances) under $1 million, and 30 or fewer full-time employees (an employee who works 30 hours a week or more for 20 or more calendar weeks). Eligible access expenditures, as defined by the Americans With Disabilities Act of 1990 (Public Law 101-336) must have been paid or incurred to make a business accessible to and usable by individuals with disabilities, provide interpreters or other methods for hearing-impaired individuals, provide readers or other methods for visually impaired individuals, or acquire/modify equipment or devices for disabled individuals.
Step-by-Step: Form 8826 Instructions For Filling Out the Document
Form 8826 allows eligible small businesses to claim the disabled access credit. This credit is part of the general business credit and taxpayers, other than partnerships or S corporations, whose only source of this credit is from those pass-through entities may report this credit directly on Form 3800. To be eligible, the business must have had gross receipts for the preceding tax year that did not exceed $1 million or had no more than 30 full-time employees, and all members of the same controlled group or business under common control should be treated as a single taxpayer. Eligible access expenditures include amounts paid or incurred to remove barriers, provide qualified interpreters or readers, and acquire or modify equipment or devices, and they must meet the standards issued by the Secretary of the Treasury. Lastly, a disability is defined as a physical or mental impairment that substantially limits one or more major life activities.
Below, we present a table that will help you understand how to fill out Form 8826.
|Information Required for Form 8826||Details|
|Eligibility||Must be an eligible small business|
|Gross Receipts||Should not exceed $1 million|
|Full-Time Employees||No more than 30 full-time employees|
|Qualified Access Expenditures||Include expenses to remove barriers, provide interpreters, and acquire/modify equipment|
|Standards||Expenditures must meet Treasury’s standards|
Do You Need to File Form 8826 Each Year?
Yes, eligible small businesses must file Form 8826 each year in order to claim the disabled access credit. Gross receipts must not exceed $1 million, or the business cannot have more than 30 full-time employees in the preceding tax year. Taxpayers that only source of this credit is from pass-through entities do not have to file but may report this credit directly on Form 3800. Eligible access expenditures must meet the standards set forth by the Secretary of the Treasury, and include amounts to remove barriers that may prevent an individual with disabilities from accessing or using a business. Disability is defined as an impairment, record of an impairment, or being regarded as having an impairment. Members of the same controlled group or business under common control are all considered one taxpayer when filing Form 8826.
Download the official IRS Form 8826 PDF
On the official IRS website, you will find a link to download Form 8826. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8826