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Ruling
Subject: Medical expenses tax offset
Question
Are you entitled to include medical expenses paid for your adult child in your claim for a medical expenses tax offset?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
You have paid medical expenses for your child who is over 21 years old.
Your child was employed until they became ill.
Your child has now returned to work.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 159P
Reasons for decision
A medical expenses tax offset is available under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where you pay medical expenses in an income year for yourself or a dependant who is an Australian resident, to the extent that you are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund.
A 'dependant' is defined in subsection 159P(4) of the ITAA 1936 as:
· The spouse of the taxpayer; or
· A child of the taxpayer who is under 21 years of age; or
· A person for whom the taxpayer is entitled to a dependants rebate, or a child or student in respect of whom the taxpayer qualifies for a notional dependants rebate.
In your case, your child does not meet the above definition and as such, is not considered to be your dependant. Therefore, you are not entitled to include your child's medical expenses in your claim for a medical expenses tax offset.