Tax accountants or attorneys?

[akafred]

Just a quick question. I don't want to pay when I can get free advice. I know I will get what I pay for.

I am in a delimma with DD. I have long wondered if she could be dyslexic. She started reading really early, and was at a 3rd grade reading level at the start of first grade, but quickly hit the "third grade wall" and has not progressed at all. She is now in third grade and just in grade level, maybe falling behind at this point. Hard to say because her behavior impacts her ability to test and show comprehension. A year ago I had a psychoeducational eval done and she was extremely uncooperative. The evaluator said she probably didn't have dyslexia. A year has passed with no progress. I paid a neuropsych to review the results and he sees signs of dyslexia and cause for concern. I also talked with a nonprofit dyslexia group that does psychoeducational evals and they reviewed last year's results for free and said they see concerns also. But because of the uncooperativeness last year, DD's IQ tested average and her reading was about average. The problem is everyone agrees her IQ is probably understated in the evaluation and she should be progressing regardless. As for testing again, it's an issue because A) most of the tests can't be repeated for 18 months and it has only been 12, and B) DD is likely to be uncooperative again which may yield similar results.

Here is the tax question: My understanding is that dyslexia tutoring is considered a medical expense and is deductible if it is officially diagnosed. Can you tell me what this diagnosis has to look like? Apparently there are a lot of ways to identify dyslexia but I don't know how many count as a "diagnosis"? Most who evaluate will be PHD or PsyD and not MD anyway. And then there are people who will look at her reading and screen for dyslexia but without all the standardized testing the PHD/PsyD perform. That would be the simplest route, but maybe not work for taxes?

Tutoring and remediation are very expensive (at least $600/month, possibly $3000-6000 summer programs, etc, so I don't want to sit in my hands if she needs help while waiting for the test period to pass but also don't want to ignore the tax implications if we can deduct.

[186momx]

www.irs.gov/pub/irs-pdf/p502.pdf

look at page 13 under special education

[akafred]

Dec 5, 2017 16:08:28 GMT -5 186momx said:

www.irs.gov/pub/irs-pdf/p502.pdf

look at page 13 under special education

Thanks. It doesn't say what documentation is needed though.

[mommyatty]

I know zippo about taxes, maybe less than the average person, but looking at the IRS guidance, I would think the neuropsychologist would qualify as a “doctor.” An eval from her school? Probably wouldn’t cut it.

[akafred]

Dec 5, 2017 20:52:00 GMT -5 mommyatty said:

I know zippo about taxes, maybe less than the average person, but looking at the IRS guidance, I would think the neuropsychologist would qualify as a “doctor.” An eval from her school? Probably wouldn’t cut it.

That is what my gut says too. And makes sense. Unfortunately it means we probably can't get that for 6+ months. OR we could get her some help now and it might mask actual dyslexia if she has it when the 6 months are up.

[waverly]

I guess it depends on how you want to budget it. If you want to do it funded by tax credit, then maybe wait the 6 months to get into the provider.

If you want to do the tutoring now, I would check with the medical provider and the tutoring company on your concern about the masking issue. I wonder if the tutoring company provides a good initial testing/ report, and good progress reports if you can take those to the medical provider and prove the dyslexia even if she has learned workarounds from the tutoring company. The workarounds/ strategies could be documented by the tutoring company.

Could the pedi provide the documentation based on her medical history or does it have to be the neuropsych? Does the neuropsych have experience writing these kinds of tax letters? I am just wondering if anyone can help you out in advance to the appointment in 6 months.

[akafred]

waverly, that is the nature of my question. Does it have to be a neuropsych? Can pedi write a note? What documentation is required?

[waverly]

It kind of sounded like any doctor... (no experience in it though).

[akafred]

Dec 6, 2017 13:22:38 GMT -5 waverly said:

It kind of sounded like any doctor... (no experience in it though).

It did. But I am sure the IRS requires documentation and I suspect a letter forom the pedi won't cut it. And as you probably know, it's not like you can just call up the IRS and ask.

[186momx]

akafred, the only time you have to show proof to the IRS or state for deductions taken is if you are audited. It isn't like you have to send the diagnosis and prescription for XYZ services in with your tax return. At this point I would try and get a temporary diagnosis from a pedi or one of Char's other doctors and then rescreen when you can.

I found this letter ruling that might help you out
www.irs.gov/pub/irs-wd/0521003.pdf

I've been looking for a court case that state what documentation is necessary to go to a special school for a disability but haven't had much luck. Court cases hold up much better than IRS agent who just interprets the law the way they see it.

Depending on what new tax law passes this could all be mute if they remove medical deductions and the Schedule A from the tax return. Have you looked into your state to see if they have any extra credits/subtractions for special need children? I know Oregon has a couple.

[akafred]

186momx, my state does not have an income tax. This would just be federal. (Also, not a special school but tutoring in this case.) Thanks for the info and resources!