Hola!

Every family faces their own challenges, but families with special needs children face unique obstacles every day. As a parent of a special needs child you probably know almost everything there is to know about your child’s specific disability or disorder, but when it comes to possible tax benefits, you may be missing out on hundreds, if not thousands, of dollars! That’s where my knowledge and expertise come in! Have you considered these expenses and credits into your taxes this year?

Medical Expenses

Diagnostic evaluations by qualified personnel, lodging required to obtain medical treatment, equipment, devices, and supplies used primarily for the treat or alleviation of your child’s medical condition, exercise programs, and therapies are all deductible.

Schooling

Deductible schooling expenses include tuition at a school that is specifically geared toward alleviating or remediating your child’s disability/disorder. Lodging, meals, and transportation to and from the school are deductible. Supervision, care, treatment, training, and tutoring by someone specially trained to meet your child’s needs, such as aides required for your child to benefit from regular or special education are also deductible.

Legal Expenses

Legal expenses such as hiring an attorney to prove that your child’s medical expenses are legitimate or to enforce an IEP or IFSP may be deductible, especially if you are suing the school to hire appropriate personnel.

Conferences and Seminars

Registration fees, travel expenses, and related books and materials for conferences or seminars dealing specifically with your child’s medical condition (not just general health and well-being) are deductible as medical expenses.

Transportation

Mileage, parking fees, and airfare for you and your child to obtain treatment/testing and/or to attend special schools and therapy sessions are deductible.

Special Diets

With a physician’s diagnosis to establish the medical need for your child’s special diet, you can deduct the additional cost of specialized foods over and above what would be paid for similar items, as well as mileage for traveling to and from the health food store and postal costs on diet specific products ordered by mail.

Home Improvements

Improving your home by adding or removing systems and structures to assist your child are deductible to the extent they do not increase your home’s fair market value. For example if a $20,000 medically necessary elevator increases the value of your home by $5,000, you can deduct $15,000 as a medical expense, but all costs involved with modifying electrical outlets (something that has no effect on the home’s fair market value) can be fully deducted.

Pre-Tax Dollars

You can pay for your child’s medical expenses using the pre-tax dollars in your Flexible Savings Account (FSA,) Health Savings Account (HSA,) and the Dependent Care Benefits (DCB). These accounts allow you to set aside limited amounts of money to go toward your child’s medical care before tax.

Credits

The Child and Dependent Care Credit includes child-care, after-school programs and day camp. The Earned Income Tax Credit (EITC) is available to parents with a child under age 19, under age 24 if a full-time student, or a permanently and totally disabled child. Meaning that regardless of age, even into adulthood, as long as your special needs child continues to live with you, you are eligible for the EITC.

While you’ve been reading up on how best to help your child be healthy and successful, I’ve been studying all of the deductions and credits available to your family. Don’t miss out on your deductions and credits! Give me a call to schedule a tax appointment or consultation to discuss your tax needs!

 

Smooches!