Tag Archives: deductions

Special Tax Deductions for Special Education via the WSJ

The Wall Street Journal

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This Wall Street Journal Article contains a good overview of the tax breaks available for special education costs.

“More than six million children in the U.S. fall into the “special needs” category, and their ranks are expanding. The number of those affected by one developmental disability alone—autism—grew more than 70% between 2005 and 2010.

The tax code can help—if you know where to look.

There are numerous tax breaks for education, but the most important one for many special-needs students isn’t an education break per se. Instead, it falls under the medical-expense category.

Although students with disabilities have a right to a “free and appropriate” public education by law, some families opt out and others pay for a range of supplemental therapies.

Such families can use Uncle Sam’s medical-expense deduction for help coping with costs, say experts. But many parents and tax advisers overlook it.”

 

 

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The one time that it’s good to be average

Here are the average deductions, by level of income, based on the latest available IRS stats.

Average Itemized Deductions        
Adjusted Gross Income Medical Expenses Taxes Interest Charitable Contributions
$15,000 to $30,000 $7,074 $3,147 $9,245 $2,189
$30,000 to $50,000 $6,153 $3,830 $9,055 $2,189
$50,000 to $100,000 $7,102 $6,050 $10,659 $2,693
$100,000 to $200,000 $9,269 $10,798 $13,734 $3,757
$200,000 to $250,000 $21,554 $18,164 $18,570 $5,895
$250,000 or more $37,143 $50,267 $27,865 $20,930
Source: CCH, 2011        

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