Your Taxes: Advice From an Expert

Steve Mendelsohn, a Washington-based attorney and public policy analyst for MS issues, shares his thoughts with MoveOverMS™ on disabilities, deductions, and the need to be candid with your accountant.

What should someone with MS look for in a tax preparer?

Anyone with a chronic condition should first make sure they choose a tax preparer with whom they feel comfortable discussing the tax implications of their condition. That way the preparer can be alert to possible deductible expenses and to financial planning issues that are related to the condition. This is especially important to keep in mind when it is a spouse or other family member who meets with the tax accountant.

What special expenses could someone with MS deduct?

When the preparer is aware of the disability, he or she can take into consideration what I call “quasi-medical expenses.” That’s not a technical term, just a descriptive term. These are things that might not, strictly speaking, be classified as medical, but could be deductible if their purpose was to mitigate the effects of MS. If you need someone to assist you with such everyday activities as dressing or bathing, then that person’s salary is deductible. And, if these expenses are deductible, then any benefits you pay on behalf of the worker – such as Social Security, taxes, or other benefits – may be deductible as well.

Any expenses outside the home?

The same thing applies with respect to employment. You can take into consideration any expenses incurred in connection with working, such as special transportation or other assistance, that would not have been incurred except for the condition. These might be eligible for deductibility under another itemized deduction, a little-known one called the Impairment Related Work Expense Deduction.

What about modifications to one's home?

Modifications made because of the condition should definitely be taken into consideration. It could be something as simple as installing ergonomically correct filing cabinets. Or moving the phone to the side of the bed or chair that’s more accessible to one’s better arm.

And if someone uses an assisted device?

Let’s say you use an assisted device either permanently or from time to time and you have to modify your home in order to accommodate the device; then the cost of that modification would qualify. Widening a doorway or installing a ramp could be a medical expense deduction. But if the expenditure increases the value of the home, then you might not get to take it as a deduction. Instead, you could be able to deduct it later for capital gains purposes when you sell the home.