Are speech therapy expenses tax deductible (2024)

As of the current tax laws in the United States, speech therapy expenses may be tax deductible under certain circ*mstances. In general, medical expenses that are incurred for the diagnosis, treatment, or prevention of a physical or mental illness or condition, including speech disorders, may be eligible for tax deductions.

Medical Necessity: The speech therapy must be deemed medically necessary by a qualified healthcare professional. This means that the speech disorder must be diagnosed by a physician or other licensed healthcare provider as a legitimate medical condition requiring treatment.
Eligible Expenses: Only the portion of speech therapy expenses that exceeds 7.5% of the taxpayer’s adjusted gross income (AGI) may be deductible. For example, if your AGI is $50,000 and your speech therapy expenses amount to $5,000, you can only deduct the amount that exceeds $3,750 (7.5% of $50,000). So, in this case, you could potentially deduct $1,250 ($5,000 – $3,750) as a medical expense on your taxes.
Itemization: To claim speech therapy expenses as a tax deduction, you must itemize your deductions on Schedule A of your federal income tax return. If you take the standard deduction, you cannot claim speech therapy expenses as a tax deduction.
Documentation: It’s important to keep proper documentation of all speech therapy expenses, including receipts, invoices, and any supporting documentation from qualified healthcare professionals, to substantiate your claim in case of an audit by the Internal Revenue Service (IRS).

It’s worth noting that tax laws are subject to change, and it’s always best to consult with a qualified tax professional or accountant for personalized advice on your specific tax situation. They can help you determine if your speech therapy expenses are eligible for tax deductions and guide you through the proper procedures for claiming them on your tax return.