Admissions Tax Information | Tax Information |
|
Tax DeductionsCan I deduct the tuition and other expenses I pay for my child to attend Silverado Academy? Generally, the answer is probably yes, at least to the extent these expenses, and other unreimbursed medical expenses, exceed 7.5% of your adjusted gross income. The reason we say “probably” yes, is because we are not tax advisors, and therefore you should not rely on our advice. Instead, please give the information we provide below to your tax advisor so they may assist you in making the proper deduction. Under the Internal Revenue Code (Section 213(a) to be exact), you are allowed a deduction for your unreimbursed medical care expenses, as well as the unreimbursed medical care expenses of your spouse and dependents. The deduction is limited, however, to only those expenses that exceed 7.5% of your adjusted gross income. In other words, if you have adjusted gross income of $100,000, you may only deduct medical expenses that in the aggregate exceed $7,500. Criteria that must be met to Qualify as a Medical Care Expense: In order for the tuition and other expenses to qualify as a deductible medical expense, the following two criteria must be met: (1) Silverado Academy must be a special school that has as its primary purpose to enable students to compensate for or overcome disabilities, to prepare them for normal education or normal living; and (2) Your child’s condition must be such that the resources at Silverado Academy for alleviating mental or physical disabilities are the principal reason for your child’s presence there. We believe that in most, if not all cases, both items are met. The first item exactly describes Silverado’s mission. While it’s true that SilveradoAcademy provides quality ordinary education for your child, this is incidental to the special therapy and other services we provide to enable your child to compensate for or overcome disabilities, and to prepare him or her for normal education or normal living. Therefore, the ordinary education should not prevent you from qualifying for the medical expense deduction. The second item we believe is met with most, if not all, of our students. However, the IRS will use a facts and circumstances test, so it’s difficult to obtain a definite answer in each case. Specific examples where the Courts have ruled that enrollment in a special school qualified for the medical expense deduction include: (1) enrollment of a child who did not cooperate in school and was often physically sick, apparently as a result of parents divorce and father’s suicide (Griesdorf, Lawrence, (1970) 54 TC 1684); and (2) 17 year old child with severe behavioral problems as a result of habitual drug use who enrolled in a college-preparatory school to address the educational and emotional needs of its students (Urbauer, Charles, (1992) TC Memo 1992-170). If Criteria Met, What is Deductible? Assuming the criteria above are met, then the entire tuition (including amounts for lodging and food) and expenses for transportation to and from Silverado Academy qualify as a medical care expense. Telephone expenses for calls to and from Silverado Academy may also qualify (again, please consult with your tax advisor) Resources. The following provides a list of sources that you may wish to review or provide to your tax advisor: Internal Revenue Code Section 213(a) Treasury Regulation Section 1.123-1(e) Revenue Ruling 70-285 Private Letter Ruling 8447014 Court Cases: Griesdorf, Lawrence, (1970) 54 TC 1684; Pazos, Jose, (1987) TC Memo 1987-131; Urbauer, Charles, (1992) TC Memo 1992-170 |
Information
Mark T
"Silverado has exceeded all of our expectations. We have seen significant improvements in our son’s attitude toward school, friends, family, and life. The balanced combination of academics, therapy, and outdoor activities form a solid platform to transform troubled teenage boys into healthy young men."
Jeff W.
"Silverado is a place where our son could learn about himself and explore his challenges with the support of an entire community, including his counselors, teachers, supervisors, and peers. The staff members show genuine concern for the well-being of every boy and make sincere, constructive efforts to build a family environment. Silverado’s philosophy of work, love, and play as well as its emphasis on connecting students with nature within very special settings were all factors of our placement decision for our son."
Natalie S.
"The natural beauty and outdoor activities coupled with the fine academics and warm and caring staff made Silverado a natural and healthy choice for our son and for us."
Randy S.
"We did know where to turn for help… Silverado saved his life and gave us back our “real” son."
Trish
"The tremendous passion, commitment, and love the SBR staff demonstrate to our boys is evidenced daily through their core principles of work, love, and play. I now see they are setting the stage for our son to become a man, and are helping us become the parents we need to be for our son."
Lee D.
"The balance of academics and therapy in a family atmosphere has had a great impact on our son and our family"
Sally & Dave W
"We sent our son of to wilderness an angry young boy, and he returned from Silverado a calm young man. What a difference the right environment makes. Thanks Silverado!"
Fay & Howard
" We can sleep at night knowing that at every level of care--from the therapists and teachers to the administration and support staff--Silverado provides a safe, nurturing haven for our son. In a short amount of time, our son's performance and attitude toward school, his relationships, and everyday functioning have greatly improved. The standards are high here, and the T.R.U.S.T. level system works!"
Request Detailed Information Packet
Search Site
Contact Us
Admissions Office: 435-676-8482
3800 South U.S. Highway 89, Panguitch, Utah 84759
Accreditation through the Northwest Association of Schools and Colleges