Expenses that you incur in order to enable your child to compensate for or overcome disabilities or to prepare your child for future normal education or normal living are deductible medical expenses. Thus, any expenses for therapy that helps your child’s adaptation are deductible medical expenses.

In addition, the expenses of your child’s schooling at a special school for mentally or physically disabled individuals are deductible (including the cost of an ordinary education) if the resources of the school are the reason for your child’s presence and the educational services are incidental to the medical care provided.

The qualification of a school as a special school depends on the school’s curriculum. A school qualifies only if the primary focus of its curriculum is to enable students to compensate for or overcome disabilities and prepare them for future normal education or normal living. For instance, schools that provide special services for children with mental and/or physical disabilities, such as schools for the teaching of braille or lip reading, are special schools because the primary purpose of the schools is alleviating or treating a physical handicap. Similarly, schools with special programs for treating severe learning, mental, psychological or emotional disorders or dyslexia are special schools.

In contrast, a school that does not provide a special program, but is beneficial because of its small class size or because it provides added services within a normal academic setting, is not a special school, since the primary purpose of the school is academic. However, if an ordinary school is willing to develop a special program that meets your child’s needs, the school will qualify as a special school, since the determination of whether a school is a special school is made on the basis of your child’s curriculum, not the curriculum of the school as a whole.

Of course, you cannot deduct any special education expenses that are borne by the state or locality. In addition, the medical expense deduction is limited to the amount that exceeds 10% of your adjusted gross income (or 7.5% if either you or your spouse is 65 or older by the end of the year, applicable through 2016).

If you have any questions regarding your ability to deduct your special education costs or any other expenses that you incur on behalf of your child, please feel free to give us a call.