Tax credit for disabled child

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My son is 2 years old and diagnosed with global development delay when he was 9 months old. Since then he has been taking Physical Occupational and Speech Therapies each 3 times a week. Luckily my insurance covers it 100% and my out of pocket max for individual is $4K

So for the first $2,500 I am utilizing FSA and then between $2,5K and $4K I pay out of pocket and then it is free.

While I was filling out my taxes I came across to this question asking if anybody in my family is disabled or not. I read the IRS form that explains it but one thing it does not explain is how one qualifies for disability at 2 years old. He can not walk or talk at this moment if it helps.

Also, even though IRS recognizes him as disabled what is the tax advantage here if there is any?

Do we have to officially prove that child is disabled? Because there are degrees of disability.

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Hi Fleet

My sympathies. As far as I know, there is no tax advantage for disability at this age. However, once the child reaches 12 years of age, then you remain eligible for child and dependent care expenses. I hate how the tax software interview thing works - it just keeps asking a bunch of questions which may not be relevant since it is pre-programmed to ask those questions at the time of the interview instead when a relevant expense comes up.

If you are in CA, make sure you get in touch with ALTA to get see what other benefits you may be entitled too.

With regards to documentation, they will ask for specific things - e.g. can he take care of himself and generally, you get a letter from the physician and that is good enough.

Have you consulted IRS documentation that explains the meaning?
I would guess it relates to if he can't work, but that doesn't apply to a 2 year old. We would do better knowing the exact wording of the question, on which form and what question #

ellory said:   Have you consulted IRS documentation that explains the meaning?
I would guess it relates to if he can't work, but that doesn't apply to a 2 year old. We would do better knowing the exact wording of the question, on which form and what question #


For the dependent care stuff (which is not applicable to OP), IRS says, "certain other individuals who are physically or mentally incapable of self-care...".   

 

I'm surprised you're not involved in whatever form the Federal Early Intervention program has taken in your state: https://www2.ed.gov/programs/osepeip/index.html?exp=0 

In my state we were not responsible for any of the charges for the same types of therapies you're doing - and not only that the payments the program made counted towards our out of pocket/deductible as it was assumed we had paid them. You should look into this, a lot.

http://ectacenter.org/partc/statepolicies.asp  this link goes to a list of the state programs

I'd be pretty pissed at my pediatrician for not sending me through the state services that may be available - and may be reason enough to establish a new patient relationship with a doctor that's worked with more children requiring additional assistance to get going developmentally 

juliox said:   I'm surprised you're not involved in whatever form the Federal Early Intervention program has taken in your state: https://www2.ed.gov/programs/osepeip/index.html?exp=0 

In my state we were not responsible for any of the charges for the same types of therapies you're doing - and not only that the payments the program made counted towards our out of pocket/deductible as it was assumed we had paid them. You should look into this, a lot.

http://ectacenter.org/partc/statepolicies.asp  this link goes to a list of the state programs

I'd be pretty pissed at my pediatrician for not sending me through the state services that may be available - and may be reason enough to establish a new patient relationship with a doctor that's worked with more children requiring additional assistance to get going developmentally 

  Early Intervention came to our house but they were not good. Also their price was very high due to my high income. In addition here in Texas they do not provide more than once a week

When I complained about the quality of the therapy, they immediately referred me to Texas Children Hospital where the quality of therapy was way ahead better. Insurance covers it anyway and also I do not pay over out of pocket maximum so I am happy

The question is mostly asked to determine if he can be classified as a dependent. His age qualifies him but if at age 19 (or 24 if full-time student), he is not disabled, then he would have to be qualified under "qualifying relative" test. If he is disabled at age 19/24, then he may still be a dependent under the easier "qualifying child" test. The IRS states, "Your child is permanently and totally disabled if both of the following apply: The child cannot engage in any substantial gainful activity because of a physical or mental condition and a doctor determines the condition has lasted or can be expected to last at least a year or lead to death."

So the IRS definition of disability doesn't really matter until he reaches age 19.



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