Legal & Planning
5 Tax Deductions & Credits For Special Needs FamiliesParents of children with special needs often have unique financial concerns, and one way to ease those concerns is to reduce their tax burden. There are many tax deductions and credits available that parents may not be aware of. Parents of children with special needs should familiarize themselves with the deductions and credits and take care to document all expenses related to their children's medical expenses, development and therapy. Here are 5 useful tax deductions and credits for parents of children with special needs.
1. Medical & Therapy ExpensesThe first type of deduction to consider is for medical and therapy expenses. For income tax purposes, learning disabilities are a type of medical condition. This may include autism, ADHD, cerebral palsy, and other learning disabilities. While these expenses are limited by 7.5 percent of adjusted gross income, the limitation may be exceeded by certain types of out-of-pocket expenses. Such expenses can include the following:
- Special schooling such as: tutoring that is specifically intended to address the special needs of the child.
- Regular education when it is intended to treat the child's special needs.
- Aides that a child may require to benefit from education.
- Exercise programs, if they are recommended by a medical professional.
- Transportation to and from special schools or therapy sessions.
- Equipment, devices and supplies necessary to treat or alleviate a medical condition, including technology items such as communication devices.