Contributed by Susan Lasky
We are often asked if our ADHD-related coaching, organizing and parenting services are covered by health insurance or are tax deductible.
Always check with your accountant first, but the following information applies to persons with disabilities:
According to the Tax Guide for Parents, published by the Family Resource Center on Disabilities, 2009 Edition http://www.frcd.org,
“You are entitled to deduct as medical expenses the cost of services incurred to alleviate your child’s mental or physical condition:”
- Payments to unlicensed practitioners if the type and quality of the services are not illegal.
- Treatments for specific conditions recommended by a doctor.
- Tuition and tutoring fees for a learning disabled child by a neurological disorder (Revenue Ruling 78-349, 9/18/78)
- Special instructions or training (Section 213-l/e Internal Revenue Code 1954)
- Remedial reading or language training for a child with dyslexia or other disability (Revenue Ruling 69-607, C.B. 1969-2, 40)
Adults: Some of these medical deductions may be claimed as business expenses (instead of medical expenses) if they are related to a disabled person’s business/occupation.
If claimed as business expenses, the deductions are not subject to the 7.5% medical limitation.
It is important to document all of your medical expenses by:
- Keeping careful records of all expenses with receipts, date of expense, etc., for at least three years, for possible auditing purposes.
- Obtaining certification from your doctor that the expense has been made for one or more of the following: Diagnosis, cure, alleviation, prevention, treatment, or dysfunction of your child’s mental or physical condition.
Note: IRS Publication 502, Medical and Dental Expenses contains more detailed information: http://www.irs.gov/pub/irs-pdf/p502.pdf
Also, according to the IRS Publication 907: Tax Highlights for Persons with Disabilities: http://www.irs.gov/pub/irs-pdf/p907.pdf
Impairment-Related Work Expenses
If you are disabled, you can take a business deduction for expenses that are necessary for you to be able to work.
If you take a business deduction for these impairment-related work expenses, they are not subject to the
7.5% limit that applies to medical expenses.
You are disabled if you have:
· A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or
· A physical or mental impairment (including, but not limited to, a sight or hearing impairment) that substantially limits one or more of your major life activities,
such as performing manual tasks, walking, speaking, breathing, learning, or working.
Impairment-related expenses defined. Impairment-related expenses are those ordinary and necessary business expenses that are:
· Necessary for you to do your work satisfactorily,
· For goods and services not required or used, other than incidentally, in your personal activities, and
· Not specifically covered under other income tax laws.
From the article : “According to the Tax Guide for Parents,” published by the Family Resource Center on Disabilities.
Susan Lasky is a both Board Certified and Senior Certified ADHD Coach.
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