Parents of Autistic Children: Other Tax Considerations
Even as we continue to gain a greater understanding of Autism Spectrum Disorders (ASD) and its daily presence in the lives of millions of families, there’s little information on how ASD is affecting them. It’s a knowledge gap that inhibits government, non-profits and the private sector from optimizing their services and assistance to families struggling with ASD. I recently wrote about some tax saving tips parents with autistic children can review so that they can take full advantage of potential savings. There are other factors parents should consider as well.
Parents may be able to claim your child as a dependent regardless of their age if they are considered to be permanently and totally disabled. Permanently and totally disables means that he or she cannot engage in any substantial gainful activity because of a physical or mental condition. A doctor determines the condition has lasted or can be expected to last continuously.
As mentioned previously, you may qualify for an Earned Income Tax Credit if your qualifying child is permanently or totally disabled regardless of age, as long as you meet the other requirements. You can receive more information here. Be advised that you may also qualify for the child or dependent care credit if you pay someone to come to your home and care for the autistic child or adult regardless of their age, if they are unable to care for themselves. More information is available.
As a volunteer, parents donating their time to local non-profit organizations such as the National Autism Association or Autism Speaks or Family Resource Centers may deduct transportation costs related to these activities. Trip mileage to the park, museum or other special destinations may be considered tax deductions if authorized in a note from a health care professional. If these destinations are important to a child’s sensory awareness or social skills, it may not only be a day of fun, but a tax-deductible opportunity.
It’s important for parents with autistic children to benefit from any and all tax deductions since the cost of caring for a child on the autism spectrum can reach $3million over the course of a lifetime. Finances can become one of the family's greatest sources of stress and only intensify as the child ages and approaches adulthood. Tax implications play a vital role in developing a fully-integrated life plan for the individual and the entire family. First and foremost though, remember to always consult a professional especially when it comes to tax issues.
About Charles Massimo
Recognized as industry expert and guest speaker at national industry conferences, Charles Massimo is a published author and media subject expert on topics ranging from wealth/asset management to investment and financial planning for high net worth families, families with autistic children and closely-held businesses.