Question

Ms. Judy Connor and her spouse, Jeff Connor, have 2019 medical expenses which total $4,330. While Ms. Connor has 2019 Net Income For Tax Purposes of $150,000, Jeff’s only income is $360 in savings account interest. They have three children, Justice is 12, has 2019 medical expenses of $4,600 and no Net Income For Tax Purposes. James is 21, has 2019 medical expenses of $8,425 and Net Income For Tax Purposes of $8,250. Julian is 23, has 2019 medical expenses of $120 and Net Income For Tax Purposes of $6,000. Ms. Connor pays all of the medical expenses. Determine Ms. Connor’s medical expense tax credit for 2019.

Answer 1

From January 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year which exceeds 7.5% of the adjusted gross income. One can claim the medical expenses paid for oneself, spouse or a dependent either when services were provided or payment was made. A person can be called dependent if he/she is either a qualifying child or qualifying relative. A qualifying child is your son, daughter, foster child, stepchild, brother, sister, step-brother, step-sister, half brother, half sister or a descendant of any of them. Whose age was under 19 at the end of 2019, who lived with you for more than half of 2019, who did not provide over half of his/her own support for 2019 and who did not file a joint return.On the other hand, a qualifying relative is a person who is your son, daughter, step-child, foster child or a descendant of any of them and who was not a qualifying child and for whom you provide more than half of the support in 2019. You can include medical expenses paid for an individual that would have been dependent except that he/she has a gross income of 4200 dollars or more in 2019 or he/she filed a joint return for 2019 or you or your spouse, if filing jointly, could be claimed as dependent on someone else's 2019 return.

Considering the above, it can be said that Ms. Connor can claim the medical expenses of herself and her spouse Jeff Conor, along with her son Justice who is a qualifying child. However, James and Julian are qualifying relatives but Ms Connor cannot claim the medical expenses in respect of them because their gross income exceed 4200 dollars.