If you have a child with special needs, a variety of tax breaks and credits are available to you. Some have been tweaked and others added as a result of recent legislation, including the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020, and the American Rescue Plan of 2021. For example, you may now contribute up to $2,750 to a Flexible Spending Account through your employer, which you can now use for over-the-counter medication. You may now deduct .17 (up from .16) per mile for medical-related travel on your 2021 tax return.
The rules can be complex: Check with your accountant with regard to the details. A handy cheat-sheet of continuing and updated tax breaks was recently published by Thomas Brinker, professor of accounting at Arcadia University. Access the checklist here.
Planning for and protecting your special needs child also requires appropriate legal planning. The Karp Law Firm has the expertise to advise you of your options, including establishing a Special Needs Trust. Schedule a consultation with our attorneys by calling (561) 625-1100 or emailing firstname.lastname@example.org.