We understand these life-changing services can be costly and require a significant financial commitment. We’re here to help.
Valuable Tax Deducations & Credits
There are a number of valuable tax deductions and credits that may be available to families who have students with diagnosed learning disabilities enrolled in the JLC. While many families take advantage of standard college tax deductions, many do not take the medical tax deduction for educational expenses. Since the JLC is for students who have been diagnosed with a learning disability, parents may be eligible for a medical tax deduction for tuition, fees, room, board, and other associated expenses. The IRS has ruled that a wide range of these education-related expenses for students enrolled in the JLC may be deductible as medical expenses.
The IRS permits taxpayers to deduct any medical or dental expenses that exceed 10% of their Adjusted Gross Income. In addition, the American Opportunity Tax Credit and the Lifetime Learning Tax Credit may also offer tax benefits to help with higher education costs.
Since University of the Ozarks cannot offer tax advice or tax opinions, we recommend that you consult with your tax advisor about your options.
Helpful IRS Publications in PDF Format
IRS Publication 502 – Medical and Dental Expenses
“You can include in medical expenses the cost (tuition, meals and lodging) of attending a school that furnishes special education to help a child overcome learning disabilities. A doctor must recommend that the child attend the school. Overcoming the learning disabilities must be the principal reason for attending the school, and any ordinary education must be incidental to the special education provided.”
In an attempt to clarify IRS Publication 502 a Private Letter Ruling 200521003 dated 5/27/2005 was published which states:
“Helping the student overcome a physical or mental handicap and move on to normal education and living is the essence of special education. Normal education is not medical care because it is not designed to help someone overcome a medical disability. Thus a physician or other qualified professional must diagnose a medical condition requiring special education to correct the condition for that education to be medical care. The school need not employ physicians to provide that special education, but must have professional staff competent to design and supervise a curriculum providing medical care. Overcoming the learning disabilities must be a principal reason for attending the school, and any ordinary education received must be incidental to the special education provided.”
IRS Publication 907 – Tax Highlights for Persons with Disabilities
IRS Revenue Ruling 78-340 – Medical Expenses: Tuition or Tutoring Fees
IRS Private Letter Ruling 8401024 – School for Learning Disabilities
IRS Private Letter Ruling 200521003 – Medical expense deductions – dyslexia
IRS Private Letter Ruling 8447014 – What is Medical Care?
Practice Aid O502 – Deductible and Non-Deductible Medical Expenses