Quick Answer
Yes, learning disability evaluations are deductible medical expenses if they exceed 7.5% of your adjusted gross income. For a family earning $80,000, you can deduct evaluation costs above $6,000. This includes psychologist fees, educational testing, and diagnostic assessments prescribed by a physician.
Best Answer
Diana Flores, EA
Best for families navigating their first learning disability diagnosis and evaluation process
What qualifies as a deductible learning disability evaluation?
Learning disability evaluations are fully deductible medical expenses when they're conducted or prescribed by a licensed medical professional. According to IRS Publication 502, diagnostic services to determine the existence of a medical condition qualify as deductible medical expenses.
The evaluation must be performed by qualified professionals such as:
Example: $4,500 evaluation for dyslexia diagnosis
The Martinez family spent $4,500 on a comprehensive dyslexia evaluation for their 8-year-old daughter. Here's what was included:
Total evaluation cost: $4,500
With an AGI of $95,000, their medical expense threshold is $7,125 (7.5% of AGI). Since $4,500 is below this threshold, they cannot deduct it unless they have additional medical expenses.
How the 7.5% threshold works
You can only deduct medical expenses that exceed 7.5% of your adjusted gross income. Here's how it works across different income levels:
What other expenses can you combine?
To reach the 7.5% threshold, combine your child's evaluation with other qualifying medical expenses:
Additional qualifying expenses:
Documentation you need
Keep detailed records of all evaluation-related expenses:
What you should do
1. Track all medical expenses throughout the year using our expense tracker
2. Get a medical referral from your pediatrician before the evaluation
3. Save all receipts and documentation
4. Use our return scanner to identify if you have enough medical expenses to itemize
5. Consider timing - if close to the threshold, bunch medical expenses in one tax year
Key takeaway: Learning disability evaluations are deductible medical expenses, but you need total medical expenses exceeding 7.5% of your AGI to benefit. For a $75,000 income family, that's $5,625 in medical expenses before any deduction kicks in.
Key Takeaway: Learning disability evaluations qualify as deductible medical expenses, but only amounts exceeding 7.5% of your adjusted gross income provide tax benefits.
Medical expense deduction thresholds by income level for learning disability evaluations
| Annual Income (AGI) | 7.5% Threshold | $5,000 Evaluation Deduction | $8,000 Evaluation Deduction |
|---|---|---|---|
| $50,000 | $3,750 | $1,250 | $4,250 |
| $75,000 | $5,625 | $0 | $2,375 |
| $100,000 | $7,500 | $0 | $500 |
| $125,000 | $9,375 | $0 | $0 |
More Perspectives
Michelle Woodard, JD
Best for divorced or separated parents splitting evaluation and treatment costs
Who can claim the deduction when parents are divorced?
When divorced parents share the cost of a learning disability evaluation, the parent who actually paid the expense can deduct it - regardless of who claims the child as a dependent. According to IRS regulations, medical expense deductions follow the payment, not the dependency exemption.
Example: Split custody medical expenses
Sarah and Mike are divorced with joint custody of their 10-year-old son with ADHD. The evaluation costs $3,800:
Tax treatment:
Documentation for divorced parents
Maintain clear records showing:
Strategic planning for divorced parents
Consider these approaches to maximize deductions:
Option 1: One parent pays all medical expenses
Option 2: Split payments strategically
Option 3: Alternate years
Key takeaway: Divorced parents can only deduct medical expenses they actually paid, not amounts reimbursed by the other parent. Strategic coordination can help one parent reach the 7.5% AGI threshold.
Key Takeaway: Only the parent who actually paid for the evaluation can deduct it, regardless of custody arrangements or dependency claims.
Diana Flores, EA
Best for grandparents who have custody and financial responsibility for grandchildren
Can grandparents deduct evaluation costs?
Grandparents can deduct learning disability evaluation costs for grandchildren if they meet the dependency test requirements. You must provide more than half of the child's support and the child must live with you for more than half the year.
Special considerations for grandparents
Qualifying child test:
Qualifying relative test (if child fails qualifying child test):
Example: Grandmother claiming evaluation costs
Dorothy, 68, has custody of her 12-year-old grandson with autism. She spent $6,200 on evaluations:
With Dorothy's AGI of $45,000 (Social Security + pension), her 7.5% threshold is $3,375. She can deduct $2,825 ($6,200 - $3,375) in medical expenses.
Additional medical expenses for grandparents
Grandparents often have substantial medical expenses that help reach the threshold:
Documentation requirements
Maintain records proving:
Key takeaway: Grandparents can deduct evaluation costs if they claim the grandchild as a dependent and meet support requirements. Lower fixed incomes often make it easier to exceed the 7.5% AGI threshold.
Key Takeaway: Grandparents raising grandchildren can deduct evaluation costs if they claim the child as a dependent, and their typically lower AGI makes reaching the 7.5% threshold more achievable.
Sources
- IRS Publication 502 — Medical and Dental Expenses
- IRS Publication 501 — Dependents, Standard Deduction, and Filing Information
Related Questions
Reviewed by Diana Flores, EA on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.