DISABLED CHILDREN

[Lee B]

New clients who adopted two special needs children, ages 11 & 13, one with fetal alcohol syndrome and one who is blind.

First clients I have ever had with dependents with disabilities.

Do I need to aware of any other issues besides  extra medical expenses ?

[Lion EA]

Adoption credit has added benefits when adopting special need children. Also, children will not "age out" of certain benefits. ABLE accounts. I haven't had that situation, but do read up on taxes and special need children.

[BP.]

Expanded eligibility for Child and Dependent Care Expenses.

[Medlin Software, Dennis]

Some possibilities: Adoption assistance (AAP), IHSS, State sponsored aid (CA has programs to cover medical items not covered elsewhere, for example), succession issues (special needs trusts, etc.).  Not so much as to alter tax prep in strange ways, but understanding the items which do not affect tax prep in case the client gives you items which can be ignored.

[joanmcq]

They get the full adoption credit regardless of how much money they spent on the adoption.

[Pacun]

Age will not prevent parents from getting earn income credit. Income will not prevent them to qualify as dependents as long as the children don't provide more than 50% of their own support. 

[Medlin Software, Dennis]

SSI may make then non dependents, especially if receiving AAP or other cash aid.

Personally, SSI application (and keep at it until approved) now, before age 18, is paramount.  Opens doors.  If receiving SSI, plan for and calculate switching to SSDI when eligible (for the kids' sake, do not take SS retirement before the benefit amount the kids will use for SSDI is maxed).

[Lee B]

In this case, the children receive monthly funds from the state, which my clients put in a trust for each child,

which will be used to care for the these kids in future years, so these funds are not used for the children's support.

[Medlin Software, Dennis]

ABLE accounts are another good tool for savings without causing means test issues.

I am glad to hear about a trust, as it is also likely they setup end of life scenarios.  Have to be careful not to cause means test issues if appropriate...