Ready for some good news? Most of the medical expenses and therapy incurred due to symptoms of autism are going to be deductible as medical expenses.
The IRS allows you to deduct qualified medical expenses that exceed 10% of your adjusted gross income (AGI). For example, if your AGI is $75,000 and you incurred $18,000 of medical expenses, you are allowed an itemized deduction of $10,500. Here’s the math.. (75,000 x 10% = $7,500, $18,000 – $7,500 = $10,500)
So what is a qualified medical expense? Let’s start here.
Prescription drugs and medications (over-the-counter drugs are not IRS approved, unless prescribed by a doctor)
Diagnostic tests and devices
Vision Care (including eyeglasses, contacts, lasik, etc.)
Therapy or counseling (including therapies listed here)
For a more detailed list, see IRS Pub 502 here..
Here are some additional expenses commonly overlooked:
Dietary restrictions (provided medically necessary)
Special education tutoring
Guide dog (or other service animal)
Home modifications (example, air conditioning upgrade due to respiratory condition or water filtration)
Travel expenses – lodging is limited to $50 per person, per night.
Mileage – 19 cents a mile for 2016 plus any parking or tolls
Conferences and seminars
It’s always recommended to keep as much documentation as possible to support your medical deductions. Doctors letters are always recommended for dietary restrictions and home modifications.
Please consult your tax advisor to discuss your specific situation.