Wermer, Rogers, Doran & Ruzon LLC certified public accountants
Cathy Thomas, C.P.A. partner. email: [email protected]
Mary E. Lancaster, C.P.A. partner. email: [email protected]
755 Essington Rd.
Joliet, IL 60435
(815)730-6250
Cathy and Mary spoke at one of our meetings and had a wealth of knowledge. At our January 9, 2014 meeting they were able to answer every question for parents about deductions for families raising a child with special needs. If you need an accountant for your taxes, past taxes, a special needs trust, audits and much much more reach out to them. You will be extremely happy with their expertise. Finances can be extremely stressful, let them help and take some of the burden off of you.
Mary E. Lancaster, C.P.A. partner. email: [email protected]
755 Essington Rd.
Joliet, IL 60435
(815)730-6250
Cathy and Mary spoke at one of our meetings and had a wealth of knowledge. At our January 9, 2014 meeting they were able to answer every question for parents about deductions for families raising a child with special needs. If you need an accountant for your taxes, past taxes, a special needs trust, audits and much much more reach out to them. You will be extremely happy with their expertise. Finances can be extremely stressful, let them help and take some of the burden off of you.
Medical and Dental Expenses (Disclaimer: we are not offering tax advice only giving you tips on receipts to save throughout the year etc. Please visit www.irs.gov for up to date tax laws or call you tax expert or reach out to the accountants above.)
Medical and dental expenses - publication 502 dec 17, 2013 (<- is also a link to this publication)
Click the above link to get the handout from our Jan 9th 2014 meeting on tax tips. Understand that deductions etc can change at anytime so look for updated publications from the IRS right before you do your taxes. The following tips below are based on a family of a child with special needs as a dependent, however a few pertain to you and your spouse as well.
Click the above link to get the handout from our Jan 9th 2014 meeting on tax tips. Understand that deductions etc can change at anytime so look for updated publications from the IRS right before you do your taxes. The following tips below are based on a family of a child with special needs as a dependent, however a few pertain to you and your spouse as well.
- Medical deductions for 2013 now have to exceed 10% of your income before you can deduct part of these expenses (in the past the magic number was 7.5%)
- Cost of food for special diets above what you would already buy for your child or family (ie; ketogenic diet, gluten free etc) for example a 5lb bag of enriched flour $2.00 and a bag of gluten free flour is $10 so $10 minus $2 = a $8 deduction. In case of Audit it's best to have a doctor write a script for a special diet.
- Modifications to home: ramps, widening of doorways etc... even extra locks (for escape artists) and child proofing!!
- After school care and before school care including summer camps are deductible under the child care credit as long as your child is a dependent on your taxes (for a typical child this credit ends at the age of 12)
- Toys, chewies, special cups, weighted blankets, games and so on that are recommended by a doctor or therapist or clearly aide or accomodate your child's disability (you wouldn't otherwise have bought if your child was typical) In case of audit having a note from therapist or doctor is ideal.
- Medical conferences concerning the chronic illness or disability of yourself, your spouse or dependents. The costs of the conference must be primarily for and necessary to the medical care of your child (spouse or yourself). Transportation to the conference is also deductible, but food and lodging are not at this time.
- Modifications to vehicles are deductible (not the vehicle itself but the cost to modify above and beyond the cost of the vehicle before modifications). Wheelchair lifts, Driver's seat modifications as well as modifications to steering and gas/break pedals, 5 point harnesses installed to seats in the car are some examples.
- Diapers and diapering accessories (wipes etc.) for adults and children above the age of 4 (even if you buy your diapers at a local retail store).
- Guide dog purchase, food, grooming, vet care and training as long as these aid the dog in performing it's duties. Note: A guide dog can only be deducted if it is trained for 3 separate duties that mitigate the disability. Example; for an autistic child it could be search behavior where the dog can find your child on command (like "go find michelle"), Blocking your child from running or getting into an unsafe situation by verbal commands and tethering to the dog. A seizure alert dog doesn't count. However, responding to the seizures, getting rescue meds, calling 911 and blocking from falling into furniture. These are all trainable behaviors that can be simulated at anytime. The dog needs to be able to perform tasks by command anywhere. If the dog is trained for only 1 duty or is for emotional support, like it makes me feel calm or senses when i have a meltdown does not qualify it for a deduction.
- If your child has a personal nurse you can deduct any meals or transportation you may provide them. Also if you pay into any benefits for them, like an employer does for an employee, those are deductible.
- Any money you pay out of pocket for medical, dental and vision is deductible. All prescriptions, co-pays, other out of pocket, eye glasses, contacts-even the solution etc for contact care. This pertains to everyone in your family listed on your taxes.
- Mileage (to and from home), at a rate of $.24 a mile, for any appointment related to the health of you, your spouse and dependents. Going to the pharmacy to pick up a prescription-log it, Doctor appt-log it, chiropractor-log it, dentist-log it, therapy-log it etc. At $.24 you may think it's not worth it but if you get close to that 10% of income threshold to deduct medical these can add up quick and help qualify you for medical deductions. Year almost over and now you wish you logged miles...don't worry go through your receipts for copays and prescriptions etc use google maps to find out the mileage.
- Legal fees for trusts, guarianship, IEP's, etc However these are listed under legal fees (not under medical) on the same form as things to perform your job like tools, work clothes etc.
- If you have a HSA account max that out first! It is a far better deduction then you regular medical. HSA (your contribution) is 100% deductible no hoops to jump through first to qualify. See tax form 8889, line 25 on page 1.
- Special tuitions for schools that the end result is to get them over their disability and is prescribed by a doctor.
Tax Document filing tip
Hanging File Folder for current tax year
3 ring binder tab dividers labeled with documents you need for your taxes. (check stubs, bank statements, pharmacy receipts, copay receipts, Explanation of Benefits (to cross check receipts), donations etc.)
Place tabs within file folder and place at the front of your file box or file cabinet for easy quick access. Little work in filing just cram the receipt or document in the right tab. This system would also work with an accordion file, or with a 3-ring binder and binder zipper pockets...
"Special Tax Deductions for Special Education" article THIS WAS POSTED A FEW YEARS AGO MAY NOT BE UP TO DATE
In fact, tax rules allow medical deductions for "diagnosis, cure, mitigation, or
treatment…primarily to alleviate or prevent a physical or mental defect or
illness" (IRS publication 502).
http://www.abilitypath.org/establishing-services/income-tax-deductions-for-children-with-special-needs.html
treatment…primarily to alleviate or prevent a physical or mental defect or
illness" (IRS publication 502).
http://www.abilitypath.org/establishing-services/income-tax-deductions-for-children-with-special-needs.html