Federal Tax Deductions for a Disabled Child
Federal tax deductions for parents with a disabled child help to defray the costs associated with the minor's continuing care. Depending upon the type of disability, children over the age of 18 may still be considered dependents under the existing federal tax code. Special education and medical care needs are common types of legitimate deductions for parents and guardians of disabled children. The federal government defines a disabled child as a person who is totally and permanently disabled, physically or mentally unable to participate in "gainful activity" because of his condition. This determination must come from a doctor.
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Education Deductions
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Special education deductions, which qualify for a federal tax deduction, include expenses for tutors, personal aides, specialized learning equipment necessary for the education of the child and transportation reimbursement to travel for educational instruction.
Child Care Credit
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The Child Care Tax Credit deduction relates to the expenses for child or respite care for the disabled child while her parents work or search for work. Documenting the amount of money paid to the caregiver is very important to justify the expenses for the duration of the covered tax year.
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Medical Deductions
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Medical expense deductions available for parents of a disabled child cover common medical appointment needs, physical therapy, medication, transportation to extended distance appointments and dental needs. To claim the medical expenses on a federal tax return, the total must exceed 7.5 percent of the parents' adjusted gross income. IRS publication 502 (see Resources) details the guidelines related to claiming medical expenses for a disabled child.
Earned Income Credit
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Parents can also claim the earned income tax credit if they fall within the income guidelines. This deduction isn't exclusive to parents with disabled children; families with low to moderate income can qualify for the earned income tax credit. IRS brochure 596 details the income guidelines and rules for claiming this federal tax deduction.
Adoption Credit
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Parents who adopt a disabled child also fall within the guidelines for the federal adoption credit. This deduction relates to any family who adopts a child, regardless of income or disability. Step-parents who formally adopt a spouse's child do not qualify for the federal deduction credit.
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