![]() ![]() ![]() (In 2023, the standard deduction rose to $13,850 for single filers and $27,700 for joint filers.) Note that as part of the Tax Cuts and Jobs Act of 2017, the standard deduction was significantly increased to $12,550 for individuals in 2021 ($25,100 for couples in 2021). Medical ExpensesĪs Brinker explains, “Unreimbursed medical expenses are deductible only to the extent that the Tax Payer itemizes their deductions (Schedule A) and these exceed 7.5 percent of their Adjusted Gross Income (AGI).” It is crucial to get a doctor’s recommendation as part of the necessary paperwork. Special Needs Services and Therapiesīrinker notes that prescribed vitamin and equestrian therapies are deductible, in addition to other group or individual programs such as art, music, dance, and play, and summer camp. ![]() If the child is receiving private tutoring by a specialized teacher, the IRS has ruled that those fees are deductible, as are tuition fees for special education provided to dyslexic children. Regular independent schools can be classified as “special schools” if the school has a special curriculum for neurologically disabled individuals and, according to IRS regulations, their tuition costs would be deductible. If a child with special needs attends a special school (or is in an institutional setting) for the main purpose of alleviating their disability by using the facility’s resources, the cost of the child's tuition, lodging, meals, and transportation is deductible, as are the costs of supervision and care. This list includes the tax benefits that have been available for some time and incorporates updated information from the Tax Cut and Jobs Act of 2017, the CARES Act (passed in March 2020 for COVID relief), and the American Rescue Plan of 2021, which have a direct impact on families with special needs dependents. Brinker, Jr., a professor of accounting at Arcadia University in Pennsylvania, has put together a handy checklist of some potential tax benefits that could be available to families who care for a special needs child. And thanks to recent changes in the tax code, there are opportunities to save substantial amounts of money at tax time. Unique tax benefits are available to families who have children with special needs. ![]()
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