Harvey G. Beringer, CPA

Letter Ruling 200521003 issued by the IRS allowed the parents of two learning disabled children to claim a medical deduction for the school tuition paid for the children. Since regular school is not designed to deal with learning disabilities, regular school education is not medical care.

This ruling dealt specifically with children who were diagnosed with learning disabilities, including dyslexia. The intention of the program was to eventually allow them to assimilate into a regular public school. The parents felt that they were allowed to deduct the full tuition as a medical expense. The fact that the school was designated as a “special school” was not the controlling faction in allowing the deduction. The deduction depends on the curriculum of the school for the children with special needs. The determining questions are, “Is the special education designed to alleviate the disorder ?” and “Why is the student attending that school?”

The dependent care credit is also available for a special needs child. The costs eligible for the credit if the dependent is physically or mentally unable to care for him/herself. Cloverdale education savings accounts (ESA) are also available to parents with children having special needs.