here is a list for special needs deductions

[Guest guest]

What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

..:. Medical Expenses:

> " Medical expenses are the costs of diagnosis, cure,

mitigation, treatment, or prevention of disease, and the

cost for treatments affecting any part or function of the

body ... Must be primarily to alleviate or prevent a

physical or mental defect or illness. " - IRS > Autism, as well as other

learning disabilities including

cerebral palsy and ADHD, is considered a medical

condition .

..:. When deductible?

>' When you paid the regardless of when the service is

provided .

..:. Whose expenses can you include?

> Your spouse

> Your dependents

.. Qualifying child

.. Your child (stepchild, foster child, brother, sister,

or a descendant of any of them)

.. Under age 19

.. Under age 24 and full-time student

.. Permanently disabled without age limits

.. Lived with you more than half of the year

.. Provided less than half of his/her support for 2008

.. Qualifying relative

.. Expended definition of relative

.. Any other person who lived with you all year as a

member of your household

.. For whom you provided over half of the support

What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

.. No age limit

.. Additional rules for divorced or separated parents

multiple support agreements

~ Matters when the care of a special needs person falls

to someone other than the parent or the special needs

person is caring for him/herself

~ Expenses for any treatment or care that a licensed

physician prescribes:

.. Most therapies:

.. Occupational

.. Physical

.. Speech

.. Hyperbaric therapy

.. Psychologist

.. Medications

.. Laboratory fees

.. Eyeglasses

.. Exercise therapies: yoga, dance, horseback riding,

etc

~ Treatments by:

.. Chiropractors

.. Christian Science practitioners

.. Dentists

.. ~ Service animal:

.. Specially trained to assist a person with disabilities

.. Expenses for care of the animal

.. Recommended by a physician

What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

~ Lead-based Paint Removal (repainting is not a medical

expense)

~ Education expenses:

.. Tutors specially educated and qualified to work with

special needs children

.. Aides required for a child to benefit from regular or

special education

.. Tuition for attending a school that furnishes special

education to overcome learning disabilities

.. Overcoming the disability must be a principal

reason for attending the school

.. Can include expense of health plan included in

tuition

.. Includes meals and lodging for a boarding school

.. Physician recommendation is required

~ Special Homes:

.. Expenses of the cost of keeping a person who is

disabled in a special home on the recommendation

of a physician (generally psyohiatrist) to help a

person adjust to community living

~ Health Institute:

.. Expenses deductable only if prescribed by a

physician

.. Necessary to alleviate a physical or mental defect

or illnessof the special needs person .

.. ~ Capital improvements:

.. Only reasonable costs to accommodate a home to a

disabled are considered medical

.. Cannot include expenses that add to the increase in

the value of the home:

What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

.. The difference between the cost of the

improvement and the increase in the fair market

value of the home is includible as a medical

expense.

.. Movement of electrical outlets and changes to

door handles considered as not affecting the fair

market value of the house and therefore are

medical deductions.

.. Includes the cost of maintaining the improvements

.. Includes costs of improvements to property rented

by the special needs person

> Equipment:

.. Specially designed bedding, car seats, etc

.. Therapeutic toys

.. Communication devises

.. Includes expenses for care of equipment.

> Medical conferences:

.. Admission to the conference

.. Transportation to the conference t ,

.. Primarily for and necessary to the care of the special

needs person

.. Majority of the time must be spent attending the

sessions on medical information.

.. Meals and lodging are NOT deductible

> Lodging:

.. Primarily for and essential to medical care

.. " .T~~ical care is provided by a doctor in a

_H£~~~~ospital or medical car facility

oii Limited to $50 for each night for each person

.. Includes lodging for a PE?r?cm traveling with the

p~rson receiving the rnedical care.

..Mea~s'are NOT included

What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

~ Long-term care:

.. Necessary for the diagnosis, cure, mitigation,

treatment, or rehabilitation:

.. Required by a chronically ill individual

.. Provided pursuant to a plan of care prescribed by

a licensed health care practitioner

.. Chronically ill:

~ Unable to perform at least two activities of

daily.

~ Requires substantial supervision to be

protected from threats to health and safety

due to severe cognitive impairment.

.. Maintenance and personal care services when

needed to provide assistance with his/her

disabilities including threats to health and safety

due to severe cognitive impairment

~ Transportation:

.. Includes bus, taxi, train, or plane fares or

ambulance services

.. Includes expenses of a parent who must go witt{

a child

.. Expenses of a nurse or other person required by

a patient who cannot travel alone

.. Expenses for regular visits to see a special needs

person if visits are recommended as a part of

bis/her treatment. C/~Mileag.~]9 and fro~ any of the above. treatments,

--{Reraples, pharmaCIes, etc. at $.24/mlle

.. Contemporaneous record: can include

calendar, mileage log, any other record of

treatment, etc. (Use MapQuest or other

program to determine amo/Jl)t !p-trnileage if

/Of h~ce~ary.) .

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What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

> Special diets:

.. Only the cost of the special food over what you pay

for the similar item at a grocery store.

.. Save all cash register tapes, receipts, and canceled

checks to substantiate your special food purchases.

(You will need to prepare a list of grocery store

prices to arrive at the differences in costs.)

.. Letter from your doctor stating that the special needs

person suffers from a medical condition and must

follow this special diet.

> Legal fees:

.. Necessary to authorize treatment for special needs

person

.. Necessary to enforce prescribed treatment for

special needs person

> Lifetime Care Advance Payment

.. Advance payments to a private institution for lifetime

care, treatment and training of your speech· needs

child upon your death or when you become unable

to provide care ..

~ Nursing services .

.. Services connected with caring for the patient's

condition.

.. Services of a kind generally performed by a nurse. ..

.. Can be provided in your home or another care

facility.

.. Includes expenses for meals of nursing attendant

and extra costs of household upkeep.

.. Includes employment taxes if you are responsible for F

withholding tax as for a household employee.

What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

.. If paid from post tax income.

.. Cannot deduct if paid pursuant to cafeteria or

cafeteria like plan.

.. Insurance cannot provide for other than medical

expenses.

~ Insurance payments:

.. If insurance reimbursements are received for

qualifying medical expenses, the expenses cannot

be deducted.

.. If expenses have already been deducted in one year

and the reimbursement is received in a subsequent

year, the reimbursement must be included in

income.

~ qtlier'eX'f3 & ns~s:

..( Diapers,c//

.. " Syringes

.. Bandages

..:. Dependent care credit it~~Zr~~::dti~.ese expenses can qualify for

dependent

'-;', ~ Required to enable caregiver to be employed.

dI ~\ ~If dependent qualifies as permanently disabled, no age

X y;/ limit for credit. " . v.J'

" j\''')I\L./.1,\~y~,f ~~ CInacnom.taekelimexitpaetinosness for e.ither

dependent care cred{iftJ or ).j ,'\j I~' . .medlcal expense deduction, not

both

l.r / if .:. TUition credits and deductions:

(/V ,JJ'\ ~ Post secondary school education (not necessarily

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What Can Be Tax Deductible?

A Checklist for Caregivers of Children with

Special Needs

~ Lifelong learning credit available for further education

~ If dependent qualifies as permanently disabled, no age

limit for credit

~ AGI limits and phase-out's for parent

..:. Earned Income Credit:

~ Married filing joint with two qualifying dependents up to

$4,824 depending on adjusted gross income.

~ Phases out at $41,000.

[Guest guest]

thanks for sharing. but my question is: should there be upper limit for the

total amount of medical tax deductible, depending on the employee? $5000 in my

case.