Written by a parent, not a doctor. Nothing here is medical advice.

Childhood Cancer Lantern
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Federal, exists in every state

Tax refunds and treatment-related deductions

Federal and Georgia tax rules can reduce what you owe or change your refund after a costly year.

What it is

Federal and Georgia tax rules can reduce what you owe or change your refund after a costly year.

Different annual earnings can move federal tax credits up or down. Georgia also has child and caregiving credits with their own rules. High unreimbursed medical costs can make itemizing worthwhile. A preparer checks the tax-year figures, which differ from this month’s benefit income.

Rules
  • Georgia’s qualified caregiving credit is 10% of eligible expenses, up to $150 and no more than your Georgia income tax otherwise due. Your qualifying relative must be at least 62 or determined disabled by Social Security. Qualifying services must come from someone unrelated to both you and the relative. Expenses already deducted in Georgia or excluded from income cannot be used again. Unused credit cannot be carried back or forward.
  • Only unreimbursed medical expenses above 7.5% of adjusted gross income are deductible, and only if you itemize. Mileage to treatment counts at the IRS medical rate (20.5 cents a mile through June 2026, 23.5 from July).
  • Refundable credits are paid through a filed return, even when no income tax is owed.
  • The $250 credit per qualifying child under six starts with tax year 2026. Your preparer checks the final 2026 form, child and custody rules, who may claim it, required proof and filing dates. Diagnosis alone does not settle any disability requirement for a separate caregiving credit.
What you get
  • Federal credits, part of them refundable, paid on a filed return.
  • Possible Georgia child or caregiving credits when the year’s requirements fit.
  • A possible medical-expense deduction when qualifying unreimbursed costs are high enough to itemize.
What to keep
  • Every bill, insurance statement, parking, mileage and lodging record for treatment trips, from now.
If you decide to apply
  1. Keep treatment receipts, mileage and care expenses together.
  2. Ask a free tax-help service or qualified preparer to review federal and Georgia provisions for the treatment year.

A free tax-help service or qualified tax preparer · Official page ↗

Missed years
  • Earlier tax years can still be claimed; each has its own deadline.
Good to know

Credits, refunds and deductions work differently. A preparer checks the year’s return before estimating any refund.

Other details
  • Federal credits and deductions change by tax year; confirm the year’s figures when you file.
  • For tax years beginning January 1, 2025, Georgia’s child and dependent care expense credit is 50% of the federal credit allowed. This is separate from the $150 qualified caregiving credit and the under-six credit starting in 2026. Your preparer checks how the provisions interact.
Official sources
Ask your social worker

“Is there free tax help you recommend, and should we be keeping treatment receipts and mileage for a medical deduction?”

Why I’m asking: We want to claim any refund we are due in a year with different income and high bills.

More background and detailed requirements
Additional program information and published rules

Who does what

The three parts, side by side. The agency decides; nobody on this page does.

You

Keep the mileage log, parking and lodging receipts and every medical bill; file even in a year you owe nothing.

Your social worker

Points you to a free VITA tax site and, if a parent is paid by Medicaid for home care, to the paperwork that marks that pay as excludable.

The care team

Records and letters when the application asks for them.

Who decides
The IRS, on the return you file
Ask your social worker
“Is there a free tax help site for families here? If a parent is paid through Medicaid for our child's home care, what paperwork marks that pay as excludable?”

How to apply

First step: Start a mileage and lodging log now, keep every medical bill, and ask the social worker for the free VITA tax site near you.

  1. Start a mileage and lodging log the week of diagnosis.
  2. Ask HR about the dependent-care account when a sibling needs paid care so a parent can work.
  3. File even in a year with no tax owed; the child tax credit and earned income credit can still pay.

Where it starts: Federal tax return; free VITA tax sites for lower-income families

What to gather

  • A mileage log with dates and destinations
  • Parking, toll and lodging receipts
  • Every medical bill and the insurance statements showing what you paid
  • The employer's dependent-care account form, if offered

How long: Settled on the tax return for the year. A refund follows filing.

What a yes looks like

A smaller tax bill or a refund that reflects the deduction and the credits.

What a no looks like, and the next move

The standard deduction beats itemizing: the mileage and lodging are then unused, but the child tax credit and earned income credit still apply.

Watch out

  • Throwing away the mileage log. Hospital trips at 20.5 cents a mile (January to June 2026) and 23.5 cents (July to December), plus parking and tolls, add up over a treatment year.
  • The lodging cap is $50 a night per person, meals not included, and only for stays needed for care at a hospital.
  • The $7,500 dependent-care account is for care that lets the parents work, such as a sibling's daycare. It is set up through an employer, usually at open enrollment or after a family change.
  • Not every Medicaid-paid wage is excludable. The exclusion is for care of someone living in the provider's home under a Medicaid program; ask the program for its form.
  • Retirement money is a last resort with tax costs. A medical hardship withdrawal does not itself waive the early-withdrawal penalty. The medical-expense penalty exception covers only qualifying expenses above 7.5% of adjusted gross income; ordinary income tax still applies to untaxed money.
  • The emergency personal-expense withdrawal exception has separate balance, annual and repeat-use limits. Ask the plan administrator or tax preparer before using it; penalty relief is not an exemption from ordinary income tax.

The numbers and the rules

The arcane layer, kept on purpose. Checked September 10, 2026.

What it is worth

Medical costs above 7.5% of income deductible if you itemize; mileage 20.5 cents (January–June 2026) and 23.5 cents (July–December); lodging $50 a night per person; dependent-care account $7,500; child tax credit up to $2,200 a child.

  • $7.5 (only the part above this counts, and only if you itemize) — Medical-expense deduction floor
  • $20.5 — Medical mileage, January to June 2026
  • $23.5 — Medical mileage, July to December 2026
  • $50 (an accompanying parent counts; meals do not) — Lodging away from home for care, per person per night
  • $7,500/year — Dependent-care account (FSA) limit, 2026
  • $3,750/year — Dependent-care account limit, married filing separately, 2026
  • $2,200/year (maximum; not a guaranteed refund) — Child tax credit per qualifying child, 2026

Legal protection: Pay from Medicaid to a parent who provides the child's home care in the same home can be left out of federal income (IRS Notice 2014-7, since January 3, 2014) · That excluded pay can still be counted as earned income for the earned income credit, all of it or none · Parking and tolls count on top of the mileage rate

What it costs the family: None. A free VITA tax site or a preparer can run the numbers.

The eligibility facts, as published

Deduction
itemizers; unreimbursed medical costs above 7.5% of adjusted gross income
Dependent care account
through an employer plan; care that lets the parents work; limited by earned income
Child tax credit
per qualifying child; maximum $2,200 in 2026
Notice 2014 7
qualifying Medicaid waiver payments to a provider living in the same home as the person cared for; not every Medicaid-paid wage

Decisions this site cannot make: The tax return

Expect friction on: Receipts and a mileage log · Itemizing versus the standard deduction

The trap: Throwing away the mileage log. The rate is 20.5 cents a mile for January to June 2026 and 23.5 cents from July; parking and tolls are on top. The lodging cap is $50 a night per person, meals not included.

What changes by state: Nothing here is state law. Some states add their own credits; a tax preparer or a free VITA site can check.

Where I read this

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