Educational Therapy as medical expense

[NECPA in NEBRASKA]

I have done enough research to conclude that the actual therapy costs from the educational thereapist, specialized software and transportation expenses are deductible for my client's child. She has learning difficulties, including dyslexia. The mother would like to deduct a new computer for the children only to use for their home schooling software designed for dyslexics. I have not been able to find guidance for the computer, except for a computer paid out of an educational IRA. The mother already has a computer, and I don't feel that another would be deductible because it would be an inconvenince to her to share it. Am I being too picky? Thanks for any ideas.

[Maribeth]

"I have done enough research to conclude that the actual therapy costs from the educational thereapist, specialized software and transportation expenses are deductible for my client's child. "

I can only give you my opinion on this and I don't have a cite, but I would deduct the computer. If the family had no computer in this home, then its cost would be part of the therapy module with the software. If the computer is going to be used only by the child and with the specialized software, why not deduct it?

Maribeth

[Pacun]

Question:

Fred is a very disruptive child. His parents have arranged for him to attend a military school to give him a more structured and disciplined learning environment. Is the school tuition deductible as a medical expense?

Answer:

No. You cannot include in medical expenses the cost of sending a troubled child to a school where the course of study and the disciplinary methods have a beneficial effect on the child's attitude if the availability of medical care in the school is not a principal reason for sending the student there. Utilizing the resources of the institution to alleviate the medical condition must be the principal reason for the child's presence there. Any ordinary education received must be incidental to the special education provided.

You can include in medical expenses the cost (tuition, meals, and lodging) of attending a school that furnishes special education to help a child to overcome learning disabilities. A doctor must recommend that the child attend the school. Overcoming the learning disabilities must be a principal reason for attending the school, and any ordinary education received must be incidental to the special education provided. Special education includes:

Teaching Braille to a visually impaired person;

Teaching lip reading to a hearing-impaired person; or

Giving remedial language training to correct a condition caused by a birth defect.

In another example, the IRS ruled that the tuition paid by the taxpayer for his children to attend a private school was deductible as a medical expense. In this case, a physician diagnosed the children with severe dyslexia that handicapped their ability to learn. The private school provided a specialized education program designed to teach the children to deal with this learning handicap eventually permitting them to continue their education at a regular school. This was allowed as a medical expense under IRC Sec. 213 [Ltr. Rul. 200521003].

[NECPA in NEBRASKA]

I'm still looking for something that would tell me that I could deduct the computer. If I did, I would tell them that they could only use that computer for schoolwork, not play games, etc. This therapy has been recommended by their doctor, because the public school that she attends is not providing the kind of help that she needs to learn with the multiple learning disablilites that she has. Thanks!

[kcjenkins]

As I read Ltr. Rul. 200521003, I would deduct the computer. Nor would I restrict the child's use of the computer, as that is rather nit-picky, when the whole point is to get the child to use the computer to help the child overcome the dyslexia. The more the child uses the computer the better, since the doctor has prescribed this as a remedial therapy.

[NECPA in NEBRASKA]

Thanks, K.C. It may be a moot point anyway, with computers being so much more inexpensive. I don't know if they will hit the 7.5% for medical anyway. They were surprised yesterday when I told them about the threshhold.