(508) 746-4663

Customer Inquiry

Client Portal Login

One Park Place, Suite 3A

Plymouth, MA 02360

(508) 746-4663

By Fax at:
(508) 746-4889

The number of children diagnosed with autism, Asperger’s syndrome, and other neurological disorders continues to grow, and so does the number of parents with special needs children that are often unaware of possible tax benefits that are available and miss out on hundreds of dollars in potential tax deductions and credits.

  • Exemptions – A taxpayer may claim a dependency exemption ($3,900 for 2013), for a “qualifying child” or a “qualifying relative.” The individual must be under the age of 19 at year end, or the individual must be a student under the age of 24 at the end of the year, or the individual must be totally and permanently disabled at any time during the year.
  • Medical Deductions – In general, to the extent they exceed the 10%-of-adjusted-gross-income (AGI) floor in 2013; a taxpayer can deduct qualifying medical expenses, including those of his or her spouse and dependent children.
    • Deducting the cost of a special school or institution, including:
      • Lodging
      • Meals
      • Transportation
      • Incidental educational costs provided by the institution
      • Costs of supervision, care, treatment, and training
    • Deduction for capital expenditures that are made primarily for the medical care of the taxpayer, the taxpayer’s spouse, and/or the taxpayer’s dependents.
    • Deduction for medical conferences and seminars – Both transportation and admission fees to qualifying medical conferences or seminars are deductible, but lodging and meals are not.
  • Unreimbursed Employee Business Expense Deductions –Impairment related work expenses are not subject to 2%-of-AGI limitation imposed on other unreimbursed employee business expenses.
    • Business deduction for attendant care services at place of employment (ordinary and necessary expense to help in performing job).
  • Credit for special needs adoption expenses
    • $12,970 for a special needs child ($12,650 in 2012), regardless of adoption expenses.
    • Must be a U.S. citizen or resident who requires adoption assistance.
    • Qualifying expenses include legal fees, court costs, and other adoption-related costs.
    • The limit is per child, not per year
    • Credit phases out for taxpayers with AGI exceeding $194,850 ($189,710 in 2012); the credit is phased out completely at $40,000 above the threshold.

Caring for a person with special needs can be costly. Be sure you are getting all of the qualifying deductions associated with those costs each year. For more information, contact your tax professional today.