Often Missed Tax Deductions- Learning Disabilities & Thinking Differences

It is not uncommon for parents of children with learning and thinking differences to miss extremely valuable deductions. Did you know that educational related and even certain legal costs can be deducted as medical expenses when they are directly related to a child’s learning disability or thinking skills? Since 1978 the IRS has issued multiple revenue rulings, and the Tax Court has heard and ruled on numerous cases related to costs that address person’s with special needs, including private special education, related counselling, costs of home disability and special needs modifications, related travel and transportation can be included as medical expenses deducted on Form 1040, Schedule A. Certain legal expenses that are connected to procuring special education or assistance related to learning and thinking difference are deductible. The Tax Court has ruled that deductions for accommodating qualifying special needs includes disabilities and differences caused by emotional circumstances, not just biological.

Some of the expenses that are included as qualifying medical expenses included:

• special schools and private tutors that address the person’s learning special needs
  • including room and board
• transportation related to attending special schools and tutors
• technology related to addressing these special needs
• occupational, speech and behavioral therapies
• related costs to attend special seminars recommended by health care provider
• legal fees directly related to obtaining special services for persons with special needs
• childcare for young children with qualifying
• special needs, even if only one parent works

Additionally there are also other tax credits and benefits such as:

• child care credits for disabled children, even if over the age of 13,
• Achieving Better Life Experiences (ABLE) Accounts
• 529 accounts that cover up to $10,000 of K-12 expenses for special needs persons.