Medical Expenses

• Medical costs are among the largest expenses required for the care of special-needs children. Such costs include medication, doctor's visits, hospital stays and medical devices used in the home or at school. One example of a medical device is a gate trainer that supports a child and helps him walk. If you have a health-care plan, some of these costs are covered by the plan. The money you must pay out-of-pocket is potentially tax-deductible. Mileage to and from caregivers' offices and for therapeutic treatment may also be deductible. The easiest way to take advantage of tax-deductible health-care benefits is through a flexible spending account. Typically set up by an employer, the account is funded through payroll deduction before taxes are taken out, which means you get more health care per salary dollar. Any funds not used during a year are forfeited, however.
  
  

Schooling

• If your child attends a school that is set up with curriculum and services to cater specifically to the needs of disabled children, the schooling expense may be tax-deductible.
  
  

Conferences

• Many who deal with special-needs problems join support organizations that allows parents to interact with each other and share ideas. Some of these organizations, such as the Angelman's Foundation, have annual conferences. Attendance at these types of conferences is tax-deductible.
  
  

Therapeutic Support

• Also deductible are therapeutic items, such as special headphones for a child with a hearing problem, special vests and furniture such as chairs.
  
  

State Programs

• Some states provide tax breaks for special needs kids as well. For example, in North Carolina Senate Bill 2059, a tax credit is provided for children with special needs. Check the state where you reside to determine if any tax benefits are provided.
  
  

Tip

• Consult local, state and federal special needs associations to get help in fully understanding all tax breaks that may be available to you.