As all parents with special needs children know, addressing a child’s physical and learning disabilities can be a huge financial burden. Educating these children so that they are able to achieve the maximum level of independence is both difficult and costly. Previously the IRS had allowed parents of special needs children to deduct the cost of tuition or other programs designed to help disabled children succeed, but the entire tuition could not be deducted. In 2011 that rule changed.
As of 2011, the IRS has ruled that tuition for a special school designed to help students manage or overcome disabilities can be counted as a deductible medical expense if the child’s primary reason for attending that school is its medical benefit. The school may offer subjects included in an ordinary school curriculum, but it must differ from an ordinary school in that it utilizes specialized education techniques to address handicaps.
In order to qualify for the medical tax deduction, the child’s doctor must recommend attending the specialized school. If the child does not qualify to attend this kind of school or if no such school is available in the geographical area, a doctor can recommend tutoring by a qualified teacher who is trained to work with children who have mental and/or physical impairments. In this case, the cost of tutoring counts as a medical deduction.
