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samjoandco
New Member

Expenses for sending disabled son to college by car , dependent care expenses

I am sending my disabled son to college by car , I am paying a driver for that@ almost 2500$ per month, 15K-20K yearly.
is this tax deductible?
I also can deduct 5000 as FSA / dependent care expenses for next year , would the driver fees qualify for that?
What is the best way to get a tax deduction here?


1 Best answer

Accepted Solutions
Hal_Al
Level 15

Expenses for sending disabled son to college by car , dependent care expenses

Driver fees will qualify for the FSA. See https://www.irs.com/articles/child-and-dependent-care-tax-credit, which says, in part, "Transportation, Food, and Other Expenses. Certain expenses, like food or transportation, may be eligible if they are required as part of your dependent’s care."

Special needs expense do not qualify for the three main education tax benefits  (American Opportunity Credit [AOC], Lifetime Learning Credit [LLC], Tuition and Fees Deduction [TFD]). They do qualify for distributions from a Qualified Tuition plan or IRA withdrawal for education (penalty exception).

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8 Replies
Hal_Al
Level 15

Expenses for sending disabled son to college by car , dependent care expenses

Driver fees will qualify for the FSA. See https://www.irs.com/articles/child-and-dependent-care-tax-credit, which says, in part, "Transportation, Food, and Other Expenses. Certain expenses, like food or transportation, may be eligible if they are required as part of your dependent’s care."

Special needs expense do not qualify for the three main education tax benefits  (American Opportunity Credit [AOC], Lifetime Learning Credit [LLC], Tuition and Fees Deduction [TFD]). They do qualify for distributions from a Qualified Tuition plan or IRA withdrawal for education (penalty exception).

Hal_Al
Level 15

Expenses for sending disabled son to college by car , dependent care expenses

Do you have any US Savings Bonds, in your name, not your son's name? Depending on the dates on the bonds, there is a way to not pay tax on cashing the bonds. You move the money to a Qualified Tuition plan ("529 Plan"), then withdraw the money from the plan to pay special needs educational expenses.

There are AGI limits for using this gimmick ( $77,550 if single, $116,300 if married filing jointly ).
samjoandco
New Member

Expenses for sending disabled son to college by car , dependent care expenses

Thanks for the anser, what do i do if the amount is more than 5000$ or Its too late to enter as FSA?
Can i just apply as itemized deductions?
SweetieJean
Level 15

Expenses for sending disabled son to college by car , dependent care expenses

"Certain expenses, like food or transportation, may be eligible if they are required as part of your dependent’s care."
How is going to college considered to be part of the dependent;s care?  College is optional.
samjoandco
New Member

Expenses for sending disabled son to college by car , dependent care expenses

Would transportation to college not be considered as  being necessary to lead normal life? These are Transportation expenses for College. I already applied for FSA here , do i need to change it?
Hal_Al
Level 15

Expenses for sending disabled son to college by car , dependent care expenses

Expenses necessary to lead a normal life simply aren't deductible.  Special education may be deductible as a medical expense, so the transportation to the special ed may be deductible (I cannot find a reference confirming that). But that's not your situation. College isn't special ed. Qualifying for FSA or the dependent care  credit seems your best option.
samjoandco
New Member

Expenses for sending disabled son to college by car , dependent care expenses

However I can claim up to 5k as dependent care expense under fsa. Right? Eventhough my son is an adult?
Hal_Al
Level 15

Expenses for sending disabled son to college by car , dependent care expenses

Yes, if the dependent care expenses are to allow you to work
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