Are ADHD Expenses Covered by Health Insurance or are They Tax Deductible?

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:”

Professional Services:

• Payments to unlicensed practitioners if the type and quality of the services are not illegal.
• Treatments for specific conditions recommended by a doctor.

Educational Services:

• 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.  

 

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Susan Lasky is a both Board Certified and Senior Certified ADHD Coach.

To contact the author: haroldmeyer@addrc.org

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