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Tax Deduction for ABA therapy

Submitted by an LD OnLine user on

Be sure to confirm this with your tax consultant or with the IRS. Even if you have already filed this year’s return, received (and spent) any refund, you can still file an ammended return, and also ammended returns for 2001 and 2000 to take advantage of this.

You may be interested in the following Revenue Ruling (78-340, 1978-2 CB 124) which was sent to me by the IRS. It is the basis for allowing medical deductions from federal income taxes for tuition for neurologically impaired students at special schools, or for “tutoring” i.e., individual instruction by a specially trained and qualified instructor [aka: Home-based ABA].

They also make reference to Rev. Rul. 69-607, 1969-2 C.B. 40, which allows deductions for language training for a child to correct a condition caused by congenital damage to the brain [i.e. SLP fees for autistic children].

Make sure you make a claim only for not-already-compensated services.
(SEE BELOW)

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REV-RUL, Medical expenses; tuition or tutoring fees., Revenue Ruling 78-340, 1978-2 CB 124, (Jan. 01, 1978)
Revenue Ruling 78-340, 1978-2 CB 124

Section 213.—Medical, Dental, Etc., Expenses

26 CFR 1.213-1: Medical, dental, etc., expenses.

[IRS Headnote] Medical expenses; tuition or tutoring fees.— A taxpayer whose child has severe learning disabilities caused by a neurological disorder may deduct as a medical expense amounts paid upon recommendation of the child s doctor for tuition fees for the child s education at a special school that has a program designed to educate children with such disabilities so that they can return to a regular school within a few years. If recommended by the doctor, amounts paid for the child’s tutoring by a teacher specially trained and qualified to deal with severe learning disabilities may also be deducted.

[Text]

A taxpayer is the parent of a minor child who has been diagnosed as having severe learning disabilities. The symptoms include congenital impairment in the areas of visual memory and visual matching. As a result, the child has great difficulty learning to read. Competent medical authorities who have examined the child have determined that the learning disabilities are caused by a neurological disorder. The child s doctor recommended that the child attend a special school, as defined in section 1.213-1(e)(1)(v)(a) of the Income Tax Regulations, that has a program designed to educate children with severe learning disabilities so that they can return to a regular school within a few years. The taxpayer placed the child in the special school and paid the tuition fees.

Held, amounts paid by the taxpayer for tuition fees for the child’s education at the special school are expenses for the child s medical care and are deductible by the taxpayer in the manner and to the extent provided by section 213 of the Internal Revenue Code of 1954.

This holding would also apply to amounts paid by the same taxpayer for the child s tutoring by a teacher who is specially trained and qualified to deal with severe learning disabilities provided the child s doctor recommended such tutoring.

Compare Rev. Rul. 69-607, 1969-2 C.B. 40, which holds that amounts paid by a taxpayer for language training for a child to correct a condition caused by congenital damage to the brain are amounts paid for medical care under section 213 of the Code.

The below information will help you and other taxpayers.

Tax Trails can help with topic click on Tax Trails (which may be found at
http://www.irs.ustreas.gov) and [Tax Information For You, on your topic 1999], (which is found at: http://www.irs.ustreas.gov). click on Forms & Pubs to get Publications and forms downloaded and online from our web site at http://www.irs.ustreas.gov ordered by calling 1-800-829-3676. At this telephoned number the IRS will instruct you on how to download forms from the web site and order forms by fax. In addition, the web site (found at http://www.irs.ustreas.gov will have Tax Regulations and Tax help and Education by clicking on Tax Regs In English and Tax help & Education, respectively.

Thank you, Tom Simmons, Revenue Agent, and Badge #75-11431

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