From the IRS for free?
By Herb Drill
The first burden of having a child with a severe learning disability is emotional; the second is physical. Close behind is the third weight: financial. I speak from experience.
Still, a kinder and gentler Internal Revenue Service notes that if you’re in such a situation. you may qualify for valuable tax benefits.
IRS and the Charles and Helen Schwab Foundation state that if your child has ADHD, or other physical, mental, or emotional impairment, you may qualify for tax benefits. Because tax laws are complex, and many tax preparers often don’t have occasion to use these “unique tax benefits, families are at risk of losing refunds worth many thousands of dollars. It’s likely that 15-30% of families with a disabled child have one or more unclaimed tax benefits,” IRS states.
So, here’s some brief guidance on the most significant tax benefits, and SHOULDN’T be considered legal advice. IRS cautions: “Tax decisions shouldn’t be made simply on the basis of [this] information. You’re advised to print the guide and give a copy to your tax advisor.”
Remember, IRS “Publications” represent the most accessible form of guidance to the tax rules for the general public, and relevant IRS publications are cited for each tax benefit listed. Also, IRS issues interpretations of the code and regulations called “Revenue Rulings.” The interpretations are formal, binding policy statements, and tax professionals rely on revenue rulings in advising clients about tax liabilities and benefits.
For example, Revenue Ruling 78-340 authorizes a medical expense deduction for tuition or tutoring fees paid for a child with a severe learning disability who is attending a special school at the recommendation of the child’s doctor.
Relatives who are caretakers, such as grandparents or aunts, and non-relative caretakers, such as foster parents, may qualify for tax benefits. You might want to check the related tax guide of the Casey National Center for Resource Family Support at info@casey.org.
Here are some tips:
· IRS provides various services via toll-free telephone numbers. You can order forms and publications, listen to prerecorded tax information, check on your refund, or ask questions about your tax return. Some services are available 24/7. Call the Tax Help Line for Individuals (1-800-829-1040) to get answers to federal tax questions.
· You can check on a refund by calling the Refund Hotline at 1-800-829-1954.
· The Business and Specialty Tax Line at 1-800-829-4933 provides help for small businesses, corporations, partnerships, and trusts for information or help preparing business returns.
· The toll-free Help Line, Refund Hotline, and Business and Specialty Tax Line - and the TTY/TDD numbers are available 7 a.m.-10 p.m. (local time) weekdays. The 1-800-829-1040 customer service line is available 10 a.m.-3 p.m. (local time) on Saturdays Jan. 29-April 9. Alaska and Hawaii follow Pacific Time.
· You can listen to recorded messages on 100-plus tax topics by calling the IRS TeleTax number, 1-800-829-4477.
· For tax forms and instructions for current and prior years, and a variety of free publications, call 1-800-829-3676. Copies of forms, publications, and other information are available 24/7 at www.irs.gov.
· For more information on IRS services, see the Form 1040 instruction packet or Publication 910, Guide to Free Tax Services.