The number of individuals with special needs is on the rise. Whether this is due to better recognition and diagnostic tools or an actual escalation in disabilities, the increase is taking its toll on state and local government program budgets. Such shortfalls require parents to cover more of their children’s medical and other related expenses. There are some income tax benefits that can help families with these costs, such as credits and deductions related to the dependency exemption, medical expenses, special instruction, capital expenditures for medically required home improvements, impairment-related work expenditures, and the earned income tax credit. The attached article reported in June 2013 in the Journal of Accountancy provides a brief overview of some common available tax benefits, as well as limitations on their use. Families who may qualify for some or all of the tax benefits should consult with their tax professional on reporting requirements. For the full article, click here.
Income Tax Benefits to Families with Special Needs
On behalf of Law Office of Williams & Associates, P.C. | Aug 20, 2013 | IRS