Can ABA therapy for my child with autism qualify for Child and Dependent Care Expenses tax credit?

8 Yes, ABA therapy for your child with autism can absolutely qualify for the Child and Dependent Care Expenses credit! The IRS is actually pretty clear on this. Since you and your husband both work, and the therapy provides care while you're working, it meets the basic requirements. The key factors are: 1) the care is for a qualifying dependent (your son), 2) you and your spouse both work and need the care during work hours, and 3) the purpose includes ensuring your child's well-being and protection. The fact that it's therapeutic AND provides care while you work makes it eligible. When you file, you'll need to complete Form 2441 (Child and Dependent Care Expenses) and include the provider's name, address, and tax ID number. Keep all your receipts and documentation from the therapy provider.

12 I went through a similar situation with my daughter's therapy needs and was completely overwhelmed trying to figure out which expenses qualified for what tax benefits. I tried reading through IRS publications but ended up more confused than when I started! I eventually used https://taxr.ai to analyze all my medical and therapy receipts. Their system automatically categorized which expenses qualified for medical deductions versus dependent care credits. It was super helpful because it broke down exactly how to claim the ABA therapy on our tax forms. The tool also helped me understand how to maximize the credit based on our income level. Definitely check it out if you're struggling with the documentation requirements!

19 Just wanted to update about my experience with https://taxr.ai after trying it for my son's therapy expenses. I was the skeptic who questioned whether these tools could handle specialized medical situations, but I'm honestly impressed. It correctly identified which of our ABA therapy receipts qualified for the Child and Dependent Care credit versus what should be counted as medical expenses. The system even caught some expenses I was about to miss completely! What surprised me most was how it handled our unique situation with two working parents and partial insurance coverage. The detailed report it generated saved us at least $2,300 in taxes. Wish I'd known about this sooner instead of manually sorting through piles of receipts every year.

6 If you're struggling to get answers from the IRS about claiming therapy expenses, you're not alone. I spent WEEKS trying to get through to someone who could give me a definitive answer about my son's ABA therapy expenses. I eventually used https://claimyr.com to connect with an actual IRS agent. They have this service where they basically wait on hold with the IRS for you, then call you when an agent is on the line. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that ABA therapy can qualify for the Child and Dependent Care credit if it's providing care while you work. She also explained exactly how to document it properly on Form 2441 to avoid red flags.

11 I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it since I'd already wasted two afternoons on hold with the IRS trying to get clarity on some therapy expenses. I was shocked when I got a call back within 47 minutes saying they had an IRS agent on the line. The agent pulled up my information and confirmed that our occupational therapy sessions qualified for the Child and Dependent Care Credit since they were necessary for our daughter AND provided care while we worked. The agent also warned me about a common mistake people make when filling out Form 2441 that could trigger an automatic review. Would have never known this if I hadn't actually gotten through to a human at the IRS. Definitely worth it for the peace of mind alone.

5 Just a heads up - make sure you get a receipt or statement from the ABA clinic that clearly separates the care/supervision component from any medical treatment. My accountant told me this makes a huge difference if you ever get audited. Our autism center was really helpful and provided us with a detailed breakdown that clearly showed which portion of our payments were for "supervisory care" versus "medical therapy." This made claiming the dependent care credit much smoother.

24 Has anyone compared whether it's better to claim ABA therapy under the medical expense deduction instead of the dependent care credit? I heard you can't double-dip and claim the same expenses for both.

Great question about comparing the medical expense deduction vs dependent care credit! I actually ran into this exact dilemma last year with my daughter's speech therapy costs. Here's what I learned: The dependent care credit is usually better because it's a direct credit (reduces taxes owed dollar-for-dollar) vs a deduction (only reduces taxable income). Plus, medical expenses only help if you itemize AND they exceed 7.5% of your AGI. For example, if you're in the 22% tax bracket and claim $3,000 in medical deductions, you save about $660 in taxes. But if you use that same $3,000 for the dependent care credit at 20%, you save $600 directly off your tax bill - and potentially more if you qualify for a higher credit percentage based on income. However, if you already have massive medical bills that put you over the 7.5% threshold anyway, then adding the therapy to medical might make sense. I'd recommend calculating both scenarios to see which gives you better overall tax savings!