Tax Breaks for Families of Children with Special Needs

Tax season is here! As a parent of a child or children with special needs, you face additional weekly expenses to assist your child in meeting their educational, gross motor and social goals. If you or someone you know cares for a child with special needs, you may qualify for a variety of tax credits, deductions or exemptions to offset these costs. Discuss the following possibilities with an attorney or accountant who understands your family and can assist you in navigating this tricky terrain.

Dependency: Regardless of age, you may be able to claim your child as a dependent if they have been diagnosed with a permanent disability by a medical doctor.

Medical Expenses: This includes a variety of things that you provide for your child to keep them healthy, assist in their education and facilitate their fine motor, gross motor or social development. Transportation to and from a doctor’s office or therapy session may be claimed as a tax deduction. It could include changes you have made to your home to allow for the most independent functioning of your child. It may also include equipment you have purchased that has been deemed essential to the treatment of your child’s medical diagnosis. Many children of all abilities utilize a specialized diet to treat a medical condition and the additional cost of this food may also be tax deductible.

Medical conferences: Parents of children with special needs seek out information regarding their child’s diagnosis and treatment. Many travel across the country to attend conferences where world-renowned medical professionals give lectures, answer questions and assess each child’s individual situation. The cost of registration of these conferences, as well as the travel costs, may be tax deductible.

Child care: Many children with special needs receive assistance from an outside provider for dressing, feeding and other self-care activities. The cost of these services may result in a tax credit.

Adoption credit: If you have adopted a child with special needs, there are both tax credits and tax exemptions available to you. This can include any fees incurred directly related to the adoption process, such as use of an attorney. Excellent record keeping is essential to getting the credits that are owed to you, so keep all documents organized and in a safe place.

For more information consult with your tax specialist and read more here:

http://www.irs.gov/Individuals/Disability-and-Earned-Income-Tax-Credit