Special Tax Deduction For Special Needs Cases

A child is diagnosed with several developmentaldisease, or for the purpose of affecting any
disorders along with delayed motor, cognitive andstructure or functions of the body.
social developmental skills. Specialists confirm that theOrdinary education is not and has never been medical
child will need a support program for two conditions ifcare; the cost of medical care includes the cost of
he/she were to attend college.attending a "special school" for the mentally or
The parents are referred to a particular school thatphysically challenged individual if the primary reasons
has courses designed for the child's conditions. Thethe child attends the school is to alleviate a physical
school offers students with learning disabilities theor mental handicap. IRS regulations also state that
help they need in order to be successful inthe cost of care and treatment of a mentally or
completing their college curriculum and becomephysically challenged individual at an institution is within
competent and successful in their chosen field ofthe meaning of "medical care".
study, thus making them responsible and productive"Special school" (sometimes referred to as institution)
members of society. Unfortunately, the school doeswithin the meaning of IRS regulations are determined
not offer any actual college courses. Instead itby the content of its curriculum is to help the student
provides a 12-month program that includes tutoringto compensate for or overcome a handicap. Parents
and specialized social, academic, and independent livingmay therefore deduct as a medical expense the cost
skills in order to help the students be successful in aof their challenged child's participation in a course that
college environment. The school determines that thewas specially designed to meet the child's needs.
child is in need of the specialized remedial training priorThe IRS will allow as deductible medical expense for
to and while attending college because of one of herthe tuition paid to these special schools based on the
conditions.following facts:
The parents are now facing more than the normal· The school was established to help children
college tuition and expenses. Luckily though, in awith special needs.
Private Letter Ruling 200729019, the IRS has stated· The child was diagnosed with certain
that a parent may deduct as a medical expense thedevelopmental disorders and the school focused on
tuition paid to a special school for the benefit of thesome of those disorders.
special needs child. This means that the IRS now· A physician recommended the child attend
looks at whether the taxpayer could deduct as athe school.
medical expense the tuition they paid for the child toIf you would like further information or to ask
attend the school.questions on this matter, please visit my blog,
Regulation §1.213(d)(1)(v)(a) states that ordinaryTaxResolutionaries, to post comments and questions.
education is not a medical expense. Section 213If you are in need of tax debt assistance, please
defines medical care as amounts paid for theseek a reputable firm to assist you in resolution.
diagnosis, cure, mitigation, treatment or prevention of