Tax Breaks for Parents of Children With Disabilities
While there are no specific tax credits for parents of children with disabilities, caregivers might benefit from these other tax breaks.


Raising children with disabilities can be expensive. For example, according to Autism Speaks, lifetime costs for people with Autism can run as high as $2.4 million, and raising dependents with other disabilities may cost even more. Adding a high tax bill to this already expensive cost can burden families.
And while the IRS doesn’t offer a special tax credit for children with special needs, some caregivers might be able to lower their tax bills by taking advantage of some of these tax breaks.
IRS rules for claiming children with disabilities
Having a child with a disability can affect your taxes. For example, the Earned Income Tax Credit (EITC) is a refundable tax credit, meaning you could receive all or part of the credit as a refund. The credit is calculated, in part, based on the number of qualifying children you have.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The IRS considers children with total or permanent disabilities "qualifying children" for this credit, regardless of age.
(Note: Generally, "qualifying children" must be under 19 or 24 if a full-time student).
Childcare for children with special needs
If you pay for childcare for your special needs child, you may be able to claim the child and dependent care credit, even if your child is 13 or older.
The credit is typically only available for children under 13. But if the IRS considers your dependent to be “disabled” (more on that below), they may qualify.
- The credit is non-refundable, meaning it can lower your tax bill to zero, but you will not receive any part of it back as a tax refund.
- The child and dependent care credit is worth up to $1,050 for one qualifying dependent.
- The maximum credit is $2,100 for two or more qualifying dependents.
Benefits of an ABLE account
ABLE (Achieving Better Life Experiences) accounts are state savings programs that help parents and guardians pay for qualified disability expenses. While investment income is typically taxable, investment earnings from an ABLE are not, if distributions are used to pay for qualified expenses.
Additionally, some states offer tax deductions for contributions that you make to qualified ABLE accounts. However, there are some important things to know before opening an ABLE account for your child.
- Your child may still be able to receive Social Security disability benefits, even if savings in an ABLE account exceed $2,000.
- The beneficiary must have received a diagnosis for the disability before age 26.
- The annual contribution limit is typically equal to the gift tax exclusion ($18,000 for 2024 and $19,000 for 2025).
- Rules and potential benefits vary by state.
Tax deductions for children with special needs
To deduct medical expenses on your tax return, you’ll need to itemize deductions (rather than take the standard deduction). However, you may be able to deduct more than the costs for doctor visits and testing.
Modifications made to your home to accommodate a dependent with a disability may qualify as a medical expense.
Additionally, you may be able to claim dependent care expenses as a medical deduction as long as you don’t use the same expenses to claim the child and dependent care credit. If your child has a service animal, you may even be able to deduct the costs of maintaining the animal (veterinary visits, food, etc.). Several other expenses may qualify for medical deductions.
Even if you don't itemize deductions, you might be able to use health savings account (HSA) funds to pay for home modifications and service animals, if they are due to a medical necessity (more on this below).
Just make sure you go through the proper steps and keep good records if you choose to go this route.
A CPA or other qualified tax professional can help you determine which costs qualify as HSA-eligible expenses and which medical costs you can deduct.
Special education tax deductions
Some tax advantage savings accounts allow exclusions to the rules for beneficiaries with disabilities. For example, education tuition is not typically considered a qualified expense under an FSA (flexible spending account) or HSA.
These types of accounts allow you to pay for qualified medical expenses with tax-free dollars. However, if you have a letter of medical necessity (LMN), special needs education tuition may qualify for reimbursement.
(Note: A letter of medical necessity is a statement made by a health care professional that deems the service necessary to treat an illness or condition).
Who is considered 'disabled' by the IRS?
For the IRS to consider your dependent to be "disabled," your child must have a disability that meets one of the following criteria.
- The disability must have lasted continuously for at least one year.
- It will last continuously for at least one year.
- The disability can lead to death.
You may need to provide proof of your child’s disability to the IRS. Acceptable proof includes a letter from the doctor or a social services agency defining the disability.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
-
Ask the Editor — Tax Questions on Disaster Losses and more
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on paper checks, hurricane losses, IRAs and timeshares.
-
Paramount+ Premium Debuts: Why "With Showtime" Got the Cut
Paramount+ drops its "with Showtime" label — same price, same content, simpler branding as Showtime titles spread across plans.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'
Tax Deductions The latest GOP tax bill might make hidden homeowner costs worse for you. Here’s how.
-
No Social Security Tax Cuts in Trump’s 'Big Bill'? What Retirees Need to Know
Tax Policy Eliminating taxes on Social Security benefits is missing from President Trump’s proposed tax overhaul. Here’s why and what an alternative offering could mean for retirement taxes.
-
Retire in the Bahamas With These Three Tax Benefits
Retirement Taxes Retirement in the Bahamas may be worth considering for high-net-worth individuals who hate paying taxes on income and capital gains.
-
Five Surprising GOP Senate Bill Tax Changes to Know
Tax Policy Senate Republicans released proposed tax changes for Trump’s ‘one big, beautiful bill.” Some provisions are already stirring debate.
-
Senate Seeks $6,000 'Bonus' Tax Deduction for Those Age 65 and Older
Tax Reform Under Trump’s ‘big bill,’ the Senate Finance Committee has proposed a larger bonus tax deduction for older adults than the House. Will it pass?
-
2025 Virginia Tax Rebate Checks Coming Soon? What to Know Now
Tax Rebates Given a historic 2025 gubernatorial race, tax policy will remain a key issue for Virginians in the months ahead.
-
Don't Miss These Four Tax Breaks for Americans Living Abroad in 2025
International Tax U.S. expats can reduce their tax burden by taking advantage of a handful of tax credits and deductions.
-
Summer Backyard Ideas With Added Tax Benefits for 2025
Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.