TAX BREAKS FOR FAMILIES WITH SPECIAL NEEDS
If you are filing taxes on behalf of yourself or a family member with special needs, you may be eligible for certain tax breaks. Here are some tax-filing tips for military families with members who have special needs.
TAX TIME TIPS: Through Military OneSource MilTax, you can receive year-round access to tax consultants who have extensive knowledge of the tax benefits for military members and families.
• CLAIM ALL ELIGIBLE DEPENDENTS. If you have a family member who is permanently and totally disabled, you may be able to claim them as a dependent, regardless of age. Read IRS Publication 501. irs.gov/uac/About-Publication-501
• EXPLORE THE ADOPTION CREDIT. If you have adopted a child with special needs, you may be eligible for a credit. You may also be able to exclude employer-provided adoption benefits from your income. See IRS Tax Topic 607. irs.gov/taxtopics/tc607.html
• TRY TO RECOUP CHILD AND DEPENDENT CARE EXPENSES. If you pay for child or dependent care so you can work or look for work, you may be eligible for a credit of up to 35% of your expenses. Care of children under the age of 13 qualifies, as does paid care of a spouse or other dependent who is not able to care for himself or herself. Read IRS Publication 503. irs.gov/uac/About-Publication-503
• EXPLORE THE CREDIT FOR THE ELDERLY OR THE DISABLED. If you or a family member is retired, on permanent and total disability, and under age 65, you may qualify for the Credit for the Elderly or the Disabled. You can take the credit only if you file Form 1040 or 1040A. Read IRS Publication 524. irs.gov/pub/irs-pdf/p524.pdf
• EXPLORE THE EARNED INCOME TAX CREDIT. You may be eligible for the Earned Income Tax Credit on behalf of a family member who is permanently and totally disabled. This can be a son, daughter, adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister or their descendant. See IRS Publication 596. irs.gov/uac/About-Publication-596
• FIND OUT WHETHER YOU CAN CLAIM MEDICAL AND DENTAL EXPENSES. Depending on how much you spend on medical care – including equipment, supplies and diagnostic devices, you may be able to deduct a portion from your taxes. Read IRS Publication 502. irs.gov/uac/About-Publication-502
• UNDERSTAND EDUCATION-RELATED TAX INCENTIVES. The Center for Parent Information and Resources can help you explore the relationship between school vouchers, education savings accounts and tax incentives ( parentcenterhub.org/school-vouchers-ncld-resources) and the implications and considerations for students with disabilities.
Educate yourself on the tax breaks you and your family may be eligible for. Through Military OneSource MilTax, you can receive year-round access to tax consultants who have extensive knowledge of the tax benefits for military members and families. During tax season, access the free MilTax preparation and e-filing software to maximize your refund and get everything you've earned. You can also access special needs consultations through Military OneSource by calling 800-342-9647. OCONUS/International? Click here for calling options.