My son we recently diagnosed last fall. My wife and I (as well as our tax preparer) have tried to do a bit of research to see if there are any tax credits available for having a child with a medical handicap. We’ve paid all bills and for supplies from our HSA so we’re pretty sure there’s no implication there. Does anyone know of anything? Thanks!
@nhinkle hi Nathan,
so, I am not an accountant but I do my taxes. there is no deduction or credit for disability for a minor unless he supports himself. if your tax preparer can’t find one there likely isn’t one. So the impacts are considered medical expenses.
HSA implies an account you put money into, pretax. This is already better than the fed and state tax deductions which has a minimum (floor) based on your combined salaries and honestly, is quite high.
Lets say your HSA was not pre-tax, or you had expenses above your HSA. You are allowed to count everything including travel, and if that number is higher than the floor minimum, you are allowed to deduct some percentage. States vary so it may be slightly different depending on your state.
I put the maximum into my HSA, because I empty it every year and every bit of it is pretax (in my employer’s plan), and recently there is even a carry-over if you don’t use it all, and of course, co-insurance means I have to front about a thousand dollars before my insurance starts.
If you and/or your wife receive disability payments - this could be drastically different than I am thinking.
Thank you for the time and explanation you gave. This is very helpful. Our family appreciates it.