Tax Credits

For families of a dyslexic child, there are several ways get tax relief on your Liberty School tuition. Take a look at the options featured below:
Medical Deductions

Good news! The Liberty School tuition may be tax-deductible for your family as a medical expense! The IRS has defined dyslexia as a medical condition that impairs a child’s ability to learn. You will need to obtain a doctor's letter which states that your child has dyslexia and also features a recommendation that The Liberty School is an effective solution to remediate your child's condition.

 

Please refer to the following excerpt featured below from the IRS publication 502. Then, click here to download the IRS Publication 502 document on Medical And Dental Expenses and confer with your tax professional about your eligibility for this deduction.
 

IRS publication 502, under the heading of Special Education, states:

You can include in medical expenses the cost (tuition, meals, and lodging) of attending a school that furnishes special education to help a child to overcome learning disabilities. A doctor must recommend that the child attend the school. Overcoming the learning disabilities must be a principal reason for attending the school. and any other ordinary education received must be incidental to the special education provided.

Under the heading of Transportation, the publication states:

You can include in medical expenses amounts paid for the transportation for, and essential to, medical care... You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. You can't include depreciation, insurance, general repair, or maintenance expenses. If you do not want to use your actual expenses...you can use the standard mileage rate...You can also include parking fees and tolls. You can add these fees and tolls to your medical expenses whether you use actual expanses or use the standard mileage rate.

Additional Tax Relief

The following may be options that can help pay tuition. Please refer to your tax professional for more information.

FSA - Flexible Spending Accounts

This type of account enables you to pay medical and/or other qualifying expenses (such as speech-language therapy) with pre-tax dollars. You elect to contribute a portion of your pay to the FSA. The money going into it avoids income tax, and thus actually lowers the cost of these services to you. This benefit may be available through your employer. This method is recommended  for paying for private speech-language services, when insurance does not cover these services. If no FSA plan is available, perhaps your employer would consider setting one up. It seems likely that as insurance benefits are cut back, this particular benefit (FSAs) is going to be more valuable than ever before. 

HSA - Health Savings Account

​The Health Savings Account is similar to the Flexible Spending Account in that it is tax deferred (pre-tax) dollars you elect to save for the purpose of qualifying expenses. The Health Savings Account is not through an employer and many families qualify. 

Coverdell Education Savings Accounts

Contributions to Coverdell education savings accounts (ESAs) grow and compound tax-free until withdrawn. Withdrawals are also tax-free if used to pay for qualified education expenses of the ESA beneficiary. Qualified expenses include tuition, fees, academic tutoring, special needs services in the case of a "special needs beneficiary," books, supplies, and other equipment which are incurred in connection with the enrollment or attendance of the beneficiary as an elementary or secondary school student at a public, private, or religious school [IRC Sec. 530(b)(3)(A)]. So clients with special needs children can use ESAs as a tax-sheltered vehicle to save for their children's special education expenses.

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The Liberty School ✦ 3107 Western Avenue ✦ Durango, CO 81301 ✦ PH 970.385.4834 ✦ EMAIL info@thelibertyschool.org

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