Tax Planning for Parents of Children with Autism

Tax Planning for Parents of Children with Autism

This article would be useful to all families who have children with special needs.

Parents or other caregivers of loved ones with autism may qualify for valuable tax benefits, which may be overlooked by some tax preparers who are unfamiliar with the autism spectrum disorder. These unique tax benefits may entitle parents to additional refunds of thousands of dollars.

Families often incur a myriad of expenses because of their child’s treatment and life style expenses many of which are deductible as medical expenses. Taxpayers who itemize deductions can claim medical expenses to the extent that they exceed 7.5 percent of adjusted gross income .The challenge is to be aware of which expenses may be allowable and to keep track of them.

Aside from the traditionally well known medical expenses such as prescriptions, doctors and dental treatments, eyeglasses, lab and hospital tests, therapies and health insurance premiums, there are many other deductible expenses you may not readily think of.

Your physical or speech therapist may recommend certain activities, such as music lessons, gymnastics, horseback riding, swimming, or other sports activities as an adjunct to the therapy. These expenses, as well as travel to and from these activities are also deductible. Be sure to ask your therapist or doctor to write an updated note recommending the suggested activity for your tax files.

In addition, you may choose to attend workshops or informative seminars or conferences about your child’s disability and treatment. The cost of these conferences as well as travel and lodging costs ($50 per night per person) may be deductible.

If your child attends a special school, tuition costs, tutoring and educational supplies (such as software, books and videos as learning tools) which designed to educate special needs children may be deductible. Sign language instruction, speech therapy, remedial reading instruction and related books and materials in addition to transportation including parking and tolls are deductible.

The cost of diagnostic evaluations including testing by a speech-language pathologist, psychologist, neurologist, or other person with professional qualifications, may be deductible.

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