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amyguthrie
New Member

Brain Balance is considered an educational program outside of the school day. It costs $15,000 for 6 months. Is this therapy considered a deductible expense?

Brain Balance is considered an educational, not a medical program.  Occupational therapy, physical therapy and educational activities are provided to develop growth in a particular hemisphere of the brain.  

http://www.brainbalancecenters.com/

4 Replies
bwa
Alumni
Alumni

Brain Balance is considered an educational program outside of the school day. It costs $15,000 for 6 months. Is this therapy considered a deductible expense?

Form IRS's Publication 502:

You can include in medical expenses the cost (tuition, meals, and lodging) of attending a school that furnishes special education to help a child to overcome learning disabilities. A doctor must recommend that the child attend the school. Overcoming the learning disabilities must be a principal reason for attending the school, and any ordinary education received must be incidental to the special education provided. Special education includes:

  • Teaching Braille to a visually impaired person,
  • Teaching lip reading to a hearing-impaired person, or
  • Giving remedial language training to correct a condition caused by a birth defect.

You cannot include in medical expenses the cost of sending a problem child to a school where the course of study and the disciplinary methods have a beneficial effect on the child's attitude if the availability of medical care in the school is not a principal reason for sending the student there.

Medical expenses are under the deductions and credits tab.


bryang226
New Member

Brain Balance is considered an educational program outside of the school day. It costs $15,000 for 6 months. Is this therapy considered a deductible expense?

Is Brain Balance considered a qualified educational expense for a penalty free 529 withdrawal?

MarilynG
Expert Alumni

Brain Balance is considered an educational program outside of the school day. It costs $15,000 for 6 months. Is this therapy considered a deductible expense?

A 529 plan (aka qualified tuition plan or QTP) is operated by a state or educational institution with tax benefits and other incentives, making it easier to save for college, post-secondary training, and K–12 education expenses.

 

Formerly limited to higher education, 529 plan distributions can be used toward qualified K–12 expenses — up to $10,000 per student — in tax years 2018 through 2025.

 

If you took a 529 distribution of 10K or less to pay tuition, you don't need to report the 1099-Q in your federal return.  Save it for your records with tuition paid receipts.  Unfortunately, you won't qualify for an Education Credit for the balance you paid over 10K for K-12 expenses. 

 

If you took a distribution over 10K, you will need to enter your 1099-Q so TurboTax can calculate the taxable portion and penalty.

 

Click this link for more info on 529 Plans for K-12 Education

 

 

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Hal_Al
Level 15

Brain Balance is considered an educational program outside of the school day. It costs $15,000 for 6 months. Is this therapy considered a deductible expense?

How do the Brain Balance people answer that question?  The answer is not readily available on their web site. A Google search came up with this: https://isaacpaulsjourney.files.wordpress.com/2013/05/brain-balance-faqs.pdf .  See question 11.  If your student has an IEP from his school, it's more likely he'll qualify. 

 

From IRS Publication 970:

Eligible elementary or secondary school.

An eligible elementary or secondary school is any public, private, or
religious school that provides elementary or secondary
education (kindergarten through grade 12), as determined
under state law.

 

529 money may only be used   to pay for private school  tuition, no other expenses. 

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