Hi, I was wondering whether anyone could shed some light on this tax situation. I previous years I had no taxable income, however I paid medical expenses of over $1500 per year since this offset came into effect. Is it possible to accumulate this tax offset, or can you only claim this offset for medical expenses incurred in the current tax year? Cheers, Eddy
Its a non-refundable personal tax offset. In other words, if you do not have sufficient tax liability in a year to use up the offset then it is wasted. Cheers, Rob
Remember too that it's per family. So if you have a spouse/de facto with tax credits then they can claim it along with theirs and the rest of the families medicals.
So you claim all your family's medical expenses as an offset in the name of one of the parents who actually does have enough income to utilise it. Spouse is a dependant - no income test Child under 21 is a dependant - no income test Other "dependants" have to qualify similar to other dependant rebate requirement definitions (NOTE - assuming Kevin Rudd has not modified these in the as-yet-to-be-detailed budget measures). Cheers, Rob