Parents of Autistic Children: Top 3 Tax-Saving Tips
With year-end fast approaching tax season will be here before you know it. For parents of autistic children, the ability to deduct every dollar possible is crucial to their bottom line. These parents incur a lot of expenses for schools, therapies, medications, learning materials, and a lot of other services their child requires. A comprehensive autism financial plan should also incorporate any possible tax saving advantages that are available. Many parents don’t realize that autism is considered a medical condition and certain costs may be deducted. Parents should get into the habit of tracking any expense that could be related to their child’s development or therapy. Here are 3 areas parents with autistic children should review so that they are taking the necessary tax deductions available to them.
1. Medical expenses: This can include hospital visits, check ups, medication or medical devices necessary for your child to function, etc. Many people do not realize the additional costs of following a medical diet. They may also be tax-deductible. You can also write off mileage used to drive your child to and from doctor visits and even therapeutic programs such as horseback riding or yoga. Seminars or conferences attended to learn more about your child’s condition may also qualify as a tax deduction.
2. Private schools and programs: If your child has an official diagnosis, special schooling including tuition or tutoring by someone, or if they attend a school and/or program that accommodates their disability and supplies a curriculum that aids in the academic and social development of your autistic child, you may be able to write the tuition and fees off. The purpose and primary reason for the choice of school must be to alleviate or improve the disability.
3. Credits: They can be even better than deductions because credits reduce the amount of tax you owe dollar for dollar. The child and dependent care credit covers work related expenses for dependents of taxpayers. Dependents muse be under the age of 13. However, if the child requires supervision due to a disability, the age limit no longer applies. Covered expenses of up to $3,000 per year per dependent are allowed, with a max for all dependents of $6,000. The amount does not need to be equal among children. At least $1 must be for the other child to claim more than $3,000. Parents may also be able to claim the earned income tax credit.
In summary:
- Medical expenses
- Private schools and programs
- Credits
should be monitored very closely and parents of autistic children should make sure to collect and save documentation to support the above deductions. Parents should also consult a professional, a tax attorney or CPA, about the extent to which these deductions can be used. Studies show that on average, 15-30% of families with a special needs child have one or more unclaimed tax benefits. The right financial advisor can help you develop a comprehensive plan that will ensure you take full advantage of all benefits available to you and can also put you in touch with appropriate attorneys or accountants as needed.
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.