Wednesday, February 4, 2009

TAX DEDUCTIBLE TUTORING?

Please note that I am NOT a tax professional, and you will need to consult one to determine if tutoring and other learning related expenses are deductible. However,

I highly recommend that you take a look at this guide to 2008 Tax Benefits for Parents

According to the tax attorney authors:
The following expenses may qualify for the deduction if a medical professional recommends the service or treatment for the child and there is a medical diagnosis of a neurological disorder, such as a severe learning disability:

* Tuition for a private school
* Tutoring
* Specialized materials (e.g., books, software and instructional materials)
* Diagnostic evaluations (by a private practitioner)
* Therapy
* Transportation expenses for a private school or tutor

The guide covers:
Tax Benefits: Deductions vs. Credits
Retroactive Claims for Refunds
Medical Expense Deductions
Health Savings Accounts and Flexible Savings Arrangements
Deduction for Disability-Related Conferences
Child and Dependent Care Credit
Exemption for Dependents
Earned Income Tax Credit
Where to Get More Information
Tax Counseling and Tax Preparation Assistance
Disputes With the IRS

Please note that "SEVERE learning disability" does NOT seem to be clearly defined as the online article Tracking ADHD Medical Expenses: How to organize medical invoices and insurance paperwork and save a little, too. by Patricia Quinn, M.D. at Additude Magazine's website states:

"Tutoring services prescribed by a physician can also be considered a medical deduction."

So, definitely review both the 2008 Tax Guide for Parents as well as the article on Tracking ADHD Medical Expenses!

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