For Parents of Special Needs Children

If you are the parent of a child with special needs, then you probably already know that there can often be additional costs and fees involved in raising your child and ensuring he or she has the best life possible. What you might not know, however, is that the government understands your plight and has written some provisions for you into the tax code, provisions which you should make an effort to learn about and take advantage of where possible.   

Special Education

If you have placed your child in a specialized school, you can actually deduct the costs associated with the school as a medical expense, believe it or not. You can deduct the cost to the extent that it exceeds the 10% of adjusted gross income floor for medical expenses.

Fortunately, lots of school related costs are deductible, including: meals and/or lodging costs, school transportation costs, and any costs associated with overall supervision or care of the child. Plus, children don’t even have to go to a specialized school to qualify for these benefits. If a child receives special care from a standard school, any additional costs involved count as a deductible medical expense. Either way, taking advantage of this option can save you a lot of money!

Home Modifications

Something else that may surprise you is that if you make modifications or improvements to your home in order to make it more accessible to your special needs child, you can deduct some of the associated costs. You can deduct up to the extent that the improvement costs surpass any increase in the fair market value of the home, making this a great deduction opportunity.

The Dependent Care Credit

One final thing that you may qualify for as the parent of a special needs child is the dependent care tax credit. For most people, the credit can only be claimed for dependents under the age of 13, but for special needs children who are incapable of caring for themselves indefinitely, the credit can be received for much longer, which is a nice bonus.

These are just a few of many tax breaks that can help out the parents of special needs children. To learn more about these or other opportunities for parents in this situation, be sure to speak with a qualified financial adviser.