The key to capturing all deductible medical expenses is to obtain an understanding of the individual ’ s “ Plan of Care .”
essential to the care of the dependant if :
• Attendance at the conference has been recommended by a medical provider treating the child ;
• The conference provides medical information concerning the child ’ s condition — specific issues not just general wellbeing ; and
• The primary purpose of the visit is to attend the conference . Note that the costs of food and lodging at a conference are not deductible .
Legal expenses incident to medical care have been allowed as a medical expense deduction only when they are “‘ necessary to access a method of medical treatment ’” ( Gerstacker v . Commissioner [ 69-2 USTC P 9580 ]). Often parents will enter legal battles with school districts over placement of their child . The key distinction is whether the legal expense was essential to the child obtaining the placement or treatment .
The key to capturing all deductible medical expenses is to obtain an understanding of the individual ’ s “ Plan of Care .”
Two examples here might help :
1 . The child ’ s school is not meeting the child ’ s learning needs . The parent withdraws the child and enrolls the child in a private school with trained teachers and appropriate supports . The parent then sues the school for reimbursement . The cost of tuition is a medical expense , but the legal fees are not . The parent made this decision without the school ’ s consent . 2 . The parent and medical team request the school provide therapy or other service at the school site . The school disagrees . The parent hires an attorney to attend meetings to compel the school to provide the services . These legal fees are medical expenses because the parent cannot hire a therapist to provide a service in a public school ; only the school can do that .
The number of individuals with special needs continues to climb . Many of those affected are becoming young adults whose needs will change . It is important that our profession be aware of the tax implications related to the increased cost of caring for individuals with special needs .
Regina M . Levy , CPA provides tax services to individuals and small businesses . You can reach her at ginalevycpa @ 3daccountant . com . adindex
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