Medical Expenses Tax Offset 2013 Now Income Tested

The amount of net medical expenses tax offset claim now depends on your level of income. You can only claim an offset of 10% of the net medical expenses over $5,000 if you have an adjusted taxable income (ATI) above:
  • $84,000 if they are single
  • $168,000 if they are a couple or family. 

The family income threshold will increase by $1,500 for each dependent child after the first. 
If the ATI is below these income thresholds, you are not affected by this change and can continue to claim an offset of 20% of their net medical expenses over $2,120.

Copyright 2014. My Tax Zone.