Two federal tax benefits that can slash your costs
The IRS offers a tax credit and a tax deduction for ADA compliance expenses. Used together, they can cover a substantial share of what you spend with Denta11y.
Section 44 — Disabled Access Credit
A dollar-for-dollar reduction of the taxes you owe. Covers 50% of eligible expenses between $250 and $10,250 per year.
Up to $5,000/yr
directly off your tax bill
- Credit = 50% of expenses over $250
- Small businesses only (≤30 employees or ≤$1M revenue)
- Filed with IRS Form 8826
- Non-refundable, but carries forward
Section 190 — Barrier Removal Deduction
A deduction that reduces your taxable income. Covers up to $15,000 per year in expenses for removing barriers for people with disabilities.
Up to $15,000/yr
deducted from taxable income
- Deduction = reduces income taxed
- Any business size qualifies
- Covers physical and digital barrier removal
- Can be used on the same expenses as Section 44
Credit vs. deduction — what’s the difference?
Tax credit (Section 44)
Reduces your tax bill dollar-for-dollar. A $500 credit saves you exactly $500. This is the more valuable of the two.
Tax deduction (Section 190)
Reduces your taxable income. A $500 deduction saves you $500 × your tax rate (e.g., $125 at 25%). Less powerful, but has no size limit on the business.
The best part: You can use both on the same expenses. Apply the Section 44 credit first, then deduct the remaining portion under Section 190.
Is your practice eligible?
| Section 44 (Credit) | Section 190 (Deduction) | |
|---|---|---|
| Business size | ≤30 employees or ≤$1M revenue | Any size |
| Max annual benefit | $5,000 credit | $15,000 deduction |
| Expense threshold | $250 minimum | No minimum |
| Covers digital accessibility | Yes | Yes |
| IRS form | Form 8826 | Schedule C / business return |
Most independent dental offices qualify for both benefits.
Example: Using both together
The one-time $299 AI-Ready Pass, assuming a 25% tax bracket.
| Step | Amount |
|---|---|
| AI-Ready Pass (one-time) | $299.00 |
| Section 44 credit: 50% of ($299 − $250) | −$24.50 |
| Remaining cost after credit | $274.50 |
| Section 190 deduction: $274.50 × 25% tax rate | −$68.63 |
| Total tax savings | $93.13 |
Effective cost: about $206 for a $299 one-time purchase — roughly a 31% reduction through tax benefits alone.
Actual savings depend on your tax bracket and other ADA expenses. This is general information, not tax advice — consult your tax advisor.
How to claim both benefits
Buy what your practice needs
Your Denta11y purchase qualifies as an eligible ADA compliance expense for both Section 44 and Section 190.
Save your invoices
Keep your Denta11y invoices (available in your dashboard under Settings). You may also include other ADA-related expenses like physical accessibility improvements.
Share with your tax preparer
Give your accountant your total ADA expenses. They'll file Form 8826 for the Section 44 credit and include the Section 190 deduction on your business return.
Save at tax time
The credit reduces your tax bill directly. The deduction lowers your taxable income. Both are applied when you file your annual return.
Key details
- Both benefits can be claimed every year — they are not one-time
- They apply to both physical and digital ADA compliance expenses
- Website accessibility tools and subscriptions are eligible expenses
- Section 44 credit is non-refundable but can be carried forward to future tax years
- Section 190 deduction is available to businesses of any size
- You can apply both to the same expenses — use the credit first, then deduct the rest
- No pre-approval from the IRS is needed — claim them when you file
Ready to get found and save on taxes?
Start with a free scan, then buy only what you need. Between the credit and the deduction, it could cost less than you think.
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