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,
â€œYou are entitled to deduct asÂ medical expenses the cost of services incurred to alleviate your childâ€™s mental or physical condition:â€
- 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:Â Some of these medical deductions may be claimed as business expenses (instead of medical expenses) if they are related to a disabled personâ€™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:Â Diagnosis, cure, alleviation, prevention, treatment, or dysfunction of your childâ€™s mental or physical condition.
Note:Â 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:Â Tax Highlights for Persons with Disabilities:Â 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:
Â· A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or
Â· 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,Â learning, or working.
Impairment-related expenses defined. Impairment-related expenses are those ordinary and necessary business expenses that are:
Â· Necessary for you to do your work satisfactorily,
Â· For goods and services not required or used, other than incidentally, in your personal activities, and
Â· Not specifically covered under other income tax laws.
From theÂ article : “According to the Tax Guide for Parents,” published by the Family Resource Center on Disabilities. Â
Susan Lasky is aÂ both Board Certified and Senior Certified ADHD Coach.
To contact the author:Â firstname.lastname@example.org
ADD and ADHD are used interchangeably for Attention-Deficit/Hyperactivity Disorder.
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