Let's try and demystify AR1000RC5 "Certificate for Individuals with Developmental Disabilities"

Every tax season we (and I'm sure other clinics) receive a large number of AR1000RC5 tax forms from families. This form is titled "Certificate for Individuals with Developmental Disabilities". For some reason, this year we have had a larger number of these requests than usual.

Obviously I am not a tax expert nor do I have a law degree, so if you have questions about your particular situation please consult an expert!

The AR1000RC5 form is used by families to receive a $500 tax credit for individuals with developmental disabilities. It is submitted with your state income taxes. Part of this form is completed by the individual filing the income tax and the other part is completed by "a licensed physician, a licensed psychologist, or a licensed psychological examiner". This "medical professional", of course, can only complete this form based off of the medical documentation available to him or her.

The first step for the medical professional is marking the relevant diagnosis based off of the patient's medical history. There are only six options and additional boxes cannot be added. These options are:

Cerebral Palsy
Epilepsy
Autism
Down Syndrome
Spina Bifida
Intellectual Disability

There are two additional boxes that confirm the diagnosis was made before the age of 22 and that the patient is expected to be impacted "indefinitely" and that the condition will cause "substantial impairment" to the patient's ability to function without support services.

Every year we receive this form for patients with developmental delay (and no other supporting diagnosis). Often times the parents will assume that their child with developmental delay falls under the "Intellectual Disability" diagnosis category.

Certainly these parents are not trying to commit tax fraud! I believe this is coming from a misunderstanding of the definition of Intellectual Disability (and perhaps a poor choice of words for the  title of the form). According to the DSM-5 (the document that defines psychiatric disorders) Intellectual Disabilities are "neurodevelopmental disorders that begin in childhood and are characterized by intellectual difficulties as well as difficulties in conceptual, social, and practical areas of living" and involve deficits in intellectual functioning and adaptive functioning. To determine if deficits are present, a psychological examiner would need to perform specific tests to make a diagnosis of Intellectual Disability. This information would then need to be sent to the PCP's office.

These deficit tests are separate and different from the tests Speech, Physical, and Occupational therapists perform to determine if a child needs therapy in any of these domains.

Now, let's look at what Arkansas law states. If you go to https://www.arkleg.state.ar.us/ArkansasLaw/, click on Arkansas Code (on the Right side of the screen) you will be forwarded to a lexis.com site listing (what I assume are) all of Arkansas' current codes and laws. To view the code that covers this tax form open 'Title 26 Taxation', then 'Subtitle 5. State Taxes', then 'Chapter 51 Income Taxes' and finally open 'Subchapter 5 - Tax Credits Generally'. The document you are looking for is '26-51-503' titled 'Support of a child with a developmental disability - Definitions'. After confirming that you are not a robot, you are presented with the relevant code backing this tax form. This is the direct link to this document:

26-51-503

This document lists out much of what is discussed above, but in a legal format. It, however, adds a provision for "other" conditions "related to an intellectual disability" requiring similar treatment or services (see Section c.1.A.ii). However, in c.1.C it stipulates that whatever condition the individual has must be expected to continue indefinitely. Almost all of our patients with developmental delay are expected to improve with therapy and, as such,  would not qualify given their condition is not "indefinite". And, one could argue, that if the patient's condition is expected to continue indefinitely then that patient has an additional diagnosis separate from developmental delay.

Although Intellectual Disability is not defined here, it is defined elsewhere in the Arkansas Code (for example code 6-41-702):

5) “Intellectual disability” means a condition characterized by significant limitations in both intellectual functioning and in adaptive behavior:
   (A) As defined by the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, published by the American Psychiatric Association; and

   (B) Diagnosed by a physician, psychologist, or other individual qualified by license or statute to diagnose; and

As we can see this Arkansas Code references the DSM-5 definition. Therefore, assuming I am interpreting this correctly, anyone claiming Intellectual Disability needs to have received specific tests, performed by a psychological professional, and meet specific requirements before this diagnosis can be made (at least from an Arkansas legal standpoint). And, again, these are tests that are different from the testing that, for example, a speech therapist would perform.

If your child meets the above criteria based off of Arkansas legal code and you have submitted the AR1000RC5 form (and any additional supporting documents) to your child's provider, we will complete and sign the form so you can submit it with your income taxes. Of course, if your child does not meet this strict criteria, we won't be able to sign this form as doing so is tax fraud.

I hope this helps to clarify this tax form and the underlying tax code and medical guidelines. As always, if you have any questions feel free to give us a call!

Chris Killingsworth, MD