Find information on key laws and resources for Texans with disabilities who qualify for tax exemptions. You can pay the IRS directly or withhold taxes from your payment.You must apply to HCAD for any exemptions for which you qualify. FICA withholding for Social Security and Medicare benefits applies to disability insurance. In Texas, a disabled adult has a right to a special homestead exemption. If you qualify, this exemption can reduce your taxes substantially. To start, fill out the disability application form. Who is a disabled person for the purposes of this exemption? NOTE: We or the DDS may ask you to fill out forms about your disability or blindness. The official term for withholding money from a payment is "offset" or "administrative offset.