Autism Financial Planning: Additional Medical Expense Deductions
Many parents don’t realize that autism is considered a medical condition. Unfortunately these parents tend to have unclaimed tax benefits. Autism financial planning will encompass a close look at any potential tax-savings benefits. It’s always best to confer with a CPA or a tax professional; however, below are some additional areas parents may overlook in regards to their child’s medical expenses.
Transportation costs to and from doctor’s appointments and therapists are considered itemized deductions. This may include bus fare, taxi receipts and mileage. The medical mileage rate is 20 cents per mile. Parents can also deduct any parking fees. Airfare for parents and the child to obtain treatment or testing can also be deducted. Remember also that trip mileage to the park, museum or other special destinations may be considered tax deductible if authorized in a note from a health care professional. If these events are important to development or a child’s sensory awareness and social skills, it can be a tax-deductible opportunity.
You can also include in medical expenses amounts paid for admission and transportation to a medical conference if the medical conference is attended by parents primarily seeking to obtain medical information concerning treatment for and care of their child. Related books and materials are also deductible. Parents and guardians need to verify attendance and have a written recommendation to attend from your child’s doctor. Some say food and accommodations expenses can also be included, while others say it can not be included. Again, consult a professional. However, lodging can be included if you are staying in a hotel while your child receives medical attention in a hospital or related setting. Then the lodging is limited to $50 per day.
Equipment and items that are important towards the therapy of a child should be tracked and itemized. As long as the item is not something a child in general would use, such as a car seat, or toys, it can be deductible. However, specially designed bedding or a specially designed car seat would be deductible. As an example, a baby stroller may not be deductible, but if a child needs a wheelchair or additional assistance with mobility or physical therapy, it can be a deduction. Diapers can also be deducted if related to a medical condition which can sometimes be the case with an autistic child. Therapeutic materials such as adaptive headphones, weighted vests or sensory swings can be deducted also. Keep a list of items you bought, how much they costs, and how they aide in your child’s development to review with your tax accountant.
Many people don’t realize that the additional costs of following a medical diet such as a gluten-free or casein-free diet can also be considered medical expenses. Despite an absence of scientific evidence, the Autism Research Institute recommends the GFCF diet as a treatment for autism and related conditions. The limitation to this deduction is that only the extra costs of the gluten-free product over what you would pay for the similar item at a grocery store is deductible. You can also claim mileage expense for the trip to the health food store and postal costs on gluten-free products ordered by mail. You should save all cash register receipts to substantiate your gluten-free or casein-free purchases. You will need to prepare a list of grocery store prices to arrive at the differences in costs. You won’t need to submit it with your return, but you should retain in for your records. Make sure to attach a letter from your doctor to your tax return. The letter should state that your child suffers from a medical condition, such as autism, and must follow a total gluten-free, casein-free diet.
New deductions for parents to consider include technology items as well. Tablets, ipads, and applications used specifically towards a child’s communication, speech or cognitive development are deductible. These items are considered similar to medical devices that may be vital to a child’s therapy.
Again, I recommend consulting a tax expert, CPA or accountant regarding these deductions. It’s also very important to save all your receipts. For parents and guardians of children on the autism spectrum, the ability to deduct every dollar is vital to already tight family budgets. Tax planning can be a critical part of an overall autism financial plan that can help parents gain a sense of control over their finances and their child’s future well-being.
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.