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
Get Kiplinger Today newsletter — free
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.
-
The 401(k) Mistake That Could Cost You Millions in Retirement Savings
Thinking about reducing your 401(K) contributions in the current market? Here are six reasons why you may want to reconsider.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
Homeschoolers: 529 Plan Savings Could Soon Work for You
Savings Accounts A new House GOP bill could change how you save for your child's homeschool education. Find out how.
-
Ohio Announces Two-Week Sales Tax Holiday Amid Tariffs, High Prices
State Tax Ohioans won't want to miss out on savings as pressure from tariffs spikes prices.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the Senate
Tax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers Qualify
Tax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025
Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
New 'No Tax on Tips' Bill Approved: What to Know Now
Income Taxes Will you stop paying taxes on your tip income this year?
-
Millions Could Lose SNAP Food Benefits Under Trump Tax Cut Plan
Tax Policy The House Agriculture Committee approved nearly $300 billion in cuts to SNAP benefits, putting many at risk of hunger.
-
Missouri Leads Capital Gains Tax Repeal: Will Your State Follow?
State Tax As one state becomes a test case, policymakers and taxpayers across the U.S. will be watching closely to see what happens next.