Comments on: Ask the taxgirl: Who Gets the Deduction?

By: Kelly

Kelly — Tue, 09 Jun 2009 19:39:46 +0000

Kim,
Yes she could if the expenses were not yet paid.

By: Kelly

Kelly — Tue, 09 Jun 2009 19:38:02 +0000

Mark, Agreed. That’s a better choice. Or paying the hospital/doctor directly to avoid gift tax issues. But it seems like from the question that the expenses were already paid.

By: mark

mark — Tue, 09 Jun 2009 18:53:56 +0000

The parents may gift the money to pay for the medical expenses (up to the annual exclusion for each person) plus any lifetime gift exclusion.

Then the son would pay the medical expenses himself and take the deduction.

By: Kim Gillen

Kim Gillen — Tue, 09 Jun 2009 15:46:20 +0000

Would the mother be able to use her tax-free gift abilities to give money directly to her son, up to the maximum gift exclusion, and then he could pay his own medical expenses and get the tax deduction for same?

By: Kelly

Kelly — Tue, 09 Jun 2009 14:52:49 +0000

Thanks!

By: Robert D Flach

Robert D Flach — Tue, 09 Jun 2009 14:44:38 +0000

KPE

To add to your answer, you can deduct amounts paid for

* a person who is a dependent but cannot be claimed as one because his/her income exceeds the income limitation or because that person filed a joint return, and

* a person who was your dependent in the year the expenses were incurred but not in the year the expenses were actually paid.

Plus, the non-custodial divorced or separated parent of a child, who cannot claim the child as a dependent, can claim a deduction for any medical expenses, including health insurance premiums, which he/she has paid for the child. For purposes of the medical expense deduction the child is considered to be the dependent of both parents.

TWTP