Families of children with special needs in Bronx, New York, can benefit from a variety of tax credits, deductions, and savings plans to reduce their income tax burden. The federal government offers several tax credits and deductions, such as the American Opportunity Tax Credit and the Interest Deduction for Federal Education Loans. In addition, New York State provides tax credits and itemized deductions to cover allowable college tuition expenses. Furthermore, parents of children with special needs may be eligible for an expanded definition of a qualifying child, who can be older than 19 if proven to have special needs and live in the home. The cost of tuition, housing, meals, and transportation for a child with special needs attending a special school or an institutional setting is deductible, as are the costs of supervision and care.
Transferring assets from a Program account to a qualifying education savings program in another state is subject to New York State income tax on earnings, as well as to the recovery of all previous New York State tax deductions made during the life of the account. To qualify for the tax deduction for medical expenses, the child's doctor must recommend that the child attend a specialized school. You can also deduct the costs of a work-related education that qualifies as a business expense, even if the education could lead to obtaining a degree. The military often tries to help families with special needs in a variety of ways. You may be able to use one of the education credits for your education expenses instead of deducting tuition and fees. In addition to these options, there are other ways to save money on taxes when you have a child with special needs.
For example, you may be able to take advantage of certain tax credits or deductions that are available only to families with special needs. You may also be able to set up a trust or other savings plan that will allow you to save money on taxes while providing for your child's future. It is important to consult with an experienced tax professional when considering any type of tax credit or deduction related to your child's special needs. A qualified professional can help you understand all of your options and make sure that you are taking advantage of all available tax benefits.