Tax Benefits for Families with Special Needs Children


Having a child with special needs can be financially challenging for a family. They have the responsibility of paying for medications, medical bills, possibly equipment, and school as well as many other things. If you or someone you know has a child with special needs, this may come as a sort of relief, or just a helping hand. Either way, instead of spending money on taxes, spend it on necessities for your child.

Because of the large increase in special needs, there has become an increased awareness as well as more tools to ease the situation. It is also common knowledge that these children need specialized attention and curriculum in school. Many times schools have to administer medical help to children because of the specific needs of the child.

“[…] according to Regs. Sec. 1.213-1(e)(1)(v), the unreimbursed cost of attending a ‘special school’ for a neurologically or physically handicapped individual 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.” (Journal of Accountancy)

There are many benefits to having these expenses deducted as medical expenses. The expenses include transportation, food, housing, and the cost of special education. A regular school that has a special needs program can also count for this deductible. If a child attends a special school but can function in a regular school over time, there is another policy for that:

“In Rev. Rul. 78-340, the IRS concluded that a taxpayer whose child had severe learning disabilities caused by a neurological disorder (e.g., an ASD) could deduct as a medical expense amounts paid for tuition and related fees for the child’s education at a special school that has a program designed to ‘mainstream’ these children so they can ultimately return to a regular school.” (Journal of Accountancy)

Though having a child with special needs can put a family through financial strain, parents still want their child to have a quality education. Now those families can do that with less stress.

For further information, read the whole article that I was citing:

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