Registered: Dec 2003
Local time: 10:35 PM
Technically you're not entitled to any special kind of deduction for dependent son diagnosed with that medical illness . You would be entitled to deduct any excess medical expenses above 7.5% of your adjusted gross income. That works if you're either poor and saddled with massive unreimbursed medical expenses. That works also if you're independently wealthy and invested almost all income in tax-exempt investments. Otherwise, if you're middle america , your question as to the kind of deduction you can claim is virtually wiped out.
But there are OTHER ways you can go around the deduction rules and plan your financial affairs differently but with lots of caution and still get some tax benefits for disabled children. Eligible health care expenses are those which would normally be deductible for Federal Income Tax purposes (without regard to adjusted gross income limitations). Expenses incurred for your dependent son which are not reimbursed from another source (ex. insurance) are eligible for reimbursement. You submit a claim form not on your tax return but to your employer or it's outside plan benefit administrators in requesting reimbursement. The claim form must be accompanied by the appropriate documentation that identifies the name of the Provider, the Date(s) of service and the amount of the claim. These include the following:
1. Medical and dental expenses which are covered but not paid by insurance
2. Expenses paid to Medical Doctors, Chiropractors and Hospitals (Co-pays).
3. Vision and hearing expenses including examinations, eyeglasses, contact lenses, hearing aids and seeing eye dogs.
4. Dental care including braces.
5. Routine physical examinations, x-rays, lab fees.
6. Prescription drugs including insulin and birth control pills.
7. Over the Counter Medicine (Tylenol, Advil, Tums, Cold Medicine, etc.)
8. Special equipment bought or rented because of a medical problem (must be prescribed and medically necessary).
9. Ambulance service and other transportation costs necessary to receive medical care.
For more information, IRS publication 502, "Medical and Dental Expenses", is available for viewing and Download PDF explanation from the IRS website . < -- Just Click Here