A child is diagnosed with several developmental disorders along with delayed motor, cognitive and social developmental skills. Specialists confirm that the child will need a support program for two conditions if he/she were to attend college.

The parents are referred to a particular school that has courses designed for the child’s conditions. The school offers students with learning disabilities the help they need in order to be successful in completing their college curriculum and become competent and successful in their chosen field of study, thus making them responsible and productive members of society. Unfortunately, the school does not offer any actual college courses. Instead it provides a 12-month program that includes tutoring and specialized social, academic, and independent living skills in order to help the students be successful in a college environment. The school determines that the child is in need of the specialized remedial training prior to and while attending college because of one of her conditions.

The parents are now facing more than the normal college tuition and expenses. Luckily though, in a Private Letter Ruling 200729019, the IRS has stated that a parent may deduct as a medical expense the tuition paid to a special school for the benefit of the special needs child. This means that the IRS now looks at whether the taxpayer could deduct as a medical expense the tuition they paid for the child to attend the school.

Regulation §1.213(d)(1)(v)(a) states that ordinary education is not a medical expense. Section 213 defines medical care as amounts paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or functions of the body.

Ordinary education is not and has never been medical care; the cost of medical care includes the cost of attending a “special school” for the mentally or physically challenged individual if the primary reasons the child attends the school is to alleviate a physical or mental handicap. IRS regulations also state that the cost of care and treatment of a mentally or physically challenged individual at an institution is within the meaning of “medical care”.

“Special school” (sometimes referred to as institution) within the meaning of IRS regulations are determined by the content of its curriculum is to help the student to compensate for or overcome a handicap. Parents may therefore deduct as a medical expense the cost of their challenged child’s participation in a course that was specially designed to meet the child’s needs.

The IRS will allow as deductible medical expense for the tuition paid to these special schools based on the following facts:

· The school was established to help children with special needs.

· The child was diagnosed with certain developmental disorders and the school focused on some of those disorders.

· A physician recommended the child attend the school.

If you would like further information or to ask questions on this matter, please visit my blog, TaxResolutionaries, to post comments and questions. If you are in need of tax debt assistance, please seek a reputable firm to assist you in resolution.

By: Sharon Raines