If these conditions are met, the parent who does not claim the child’s dependency deduction can still deduct the child’s medical expenses that he or she paid.
March 14, 2018
The tax benefits for parents with children who have learning disabilities are numerous, yet many are unaware of what they are. Enroll Agent Noe Martinez, of Liberty Tax Service, shares the following four tax tips to educate parents:
No. 1: Dependants. To claim credits or deductions, the child must be related to the taxpayer or their dependant. “Be aware that in cases where a non-custodial parent or a relative provides over half the support for a child with learning disabilities and pays for medical/educational expenses, the parent or relative may qualify to claim the child as their dependent and claim medical expense deductions,” noted Martinez.
No. 2: Deducting medical expenses. A child of divorced or separated parents can be treated as a dependent of both parents solely for the medical expense deduction. “If one or both parents must have custody of the child more than half the year, one or both parents must provide more than half the child’s support,” added Martinez. “If these conditions are met, the parent who does not claim the child’s dependency deduction can still deduct the child’s medical expenses that he or she paid.”
No. 3. Deductible education. In most cases, costs related to providing a child’s education are not considered medical care and therefore are not deductible as a medical expense. However, according to Regs. Sec. 1.213-1(e)(1)(v), the unreimbursed cost of attending a “special school” for a neurologically or physically handicapped individuals is deductible as a medical expense if the principal reason for sending the individual to the school is to alleviate the handicap through the school’s resources.
“The expenses of a special school that are deductible as medical expenses include amounts paid for lodging, meals, transportation, and the cost of ordinary education that is incidental to the special services the school provides,” noted Martinez. “A regular school with special curricula can also be classified as a special school for those individuals benefiting from a special curriculum. Amounts paid for private tutoring by a specially trained teacher qualified to deal with severe learning disabilities are also deductible.”
No. 4: Doctor recommendation. To be deductible, the child’s doctor must recommend the special school, therapy or tutoring, and there must be a diagnosis of a medical condition. “The school must have professional staff competent to design and supervise a program for helping your dependent overcome his or her disability,” concluded Martinez. “The fact that a particular school or camp is recommended by a doctor will not qualify if the school or camp has no special program geared to the child’s specific personal problem.”
About Liberty Tax Service
Liberty Tax Service provides custom services designed to meet all tax needs. It provides personal tax preparation, business tax preparation and Hispanic services. For more information, please call (281) 829-9777, or visit http://www.libertytax.com. Liberty Tax Service is located at 829 South Mason, Suite 230, Katy, TX 77450. Mr. Martinez is an Enroll Agent.
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