Super Useful Tips- Tax Strategies For Kids with Special Needs

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Super Useful Tips- Tax Strategies For Kids with Special Needs

It’s that time again! Tax season is coming. You do everything for your kids and it’s not inexpensive. Families who have children with special needs incur additional medical and educational costs and there may be tax deductions or credits to help. You could probably use the help so here are some tips to consider. I’m a lawyer and I try to find useful information for the families I work with but I’m not an accountant so for the all the details click here for the full article.

The Affordable Care Act has some significant implications for special needs families.

1. Medical Expense Deductions are broader that you might think:

Medical care can include tutoring and special schooling for learning disabilities. Before the ACA medical expenses for most taxpayers were limited to the amount in excess of 7.5% of Adjusted Gross Income (AGI) now the AGI limitation is 10% for ALL taxpayers.

Out pocket costs may include expenses to alleviate or remediate the disability such as:

  • Special Schooling including tuition or tutoring
  • Aides for regular or special education.
  • Therapies: Occupational, Physical, Speech, Music, etc.
  • Diagnostic evaluations
  • Exercise program recommended by medical personnel ex. dance or horseback riding
  • Transportation: Mileage, parking fees, and/or airfare
  • Lodging required to obtain medical treatment
  • Diapers – if related to medical condition.
  • Equipment or devices
  • Home Improvements related to the medical condition
  • Parents’ attendance at a disability related conference.


Special Diets: The additional costs of following a specifically prepared medical diet such as the gluten-free, casein-free diet may be considered medical expenses.


Here is an example of a GFCF Diet Deductible Worksheet. You should discuss with your accountant attaching a letter from your doctor.

Legal Expenses: Possibly engaging a lawyer to enforce an IEP and IFSP. But this is complicated so consult your accountant.

Credits: Even better than deductions, credits reduce $ for $ the amount of tax owed.

Child and Dependent Care Credit

Covers work related expenses for dependents of taxpayer. Usually this ends at age 13 but if the child has a qualifying disability the age limit may not apply. The type of dependent care accepted by the IRS is limited and the amount of the credit a person can take depends on their Adjusted Gross Income so consult an accountant but at least ask.



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