As we all would painfully agree to it, tooth ache is on the reign of all the; not so long-lasting cramps and headaches and strains and sprains. And so it certainly is an area for me to look into for tax purpose to be claimed as deduction. As much as i like to pick tax claims and payments and read up about them understanding their implications on income; my recently subsided but long lasting toothache and the "gold coins" the "lord of my jaws" asked for; acted as a spur for this one.
The Australian tax office groups dental expenses with all the other medical expenses for tax purpose. Which means like all other medical expenses your dental expenses could only be claimed depending on how much you spend and not exactly the amount you spend. You can claim your net medical expenses(which is your total medical expenses less refund from Medicare and Private Health Insurance).
So the way it works is that you can claim 20% of the "Net Medical expenses" over AUD 2162 if your Adjusted Total Income(ATI) is AUD 88000 or less. Same would be 10% of the "Net Medical expenses" over AUD 5500 if ATI is 88000 or more. This is if you are Single. But if you have a Spouse or Children or both; the ATI threshold changes to AUD 176000.
The conditions to claim the above have been changes for the Assessment year 2013/14 which says:
You can claim the offset in 2013/14 only if you received it in 2012/13. So unfortunately if you did not receive any offset in the year 2012/13 you would not be able to claim any in future years.
Or you can claim if the medical expenses are paid for disability aid, attendant care or aged care.
Would provide an example to make the above more clear:
As Zoe did not receive any offset in 2012/13 she cannot claim any in 2013/14 either.
Ending this one with what i found out regarding what you can and cannot claim in regards to dental expenses:
Can
Payments to dentists, orthodontists or to registered dental mechanics.:)
Can't
Payment to private health insurance provider
Payment for cosmetic dental treatment
Payment for "over-the-counter", non-prescribed medicines like pain-relievers.
Travel or accommodation expenses for your dental work.
Hope this provides a heads up for those who are preparing to sit in that chair; and information for others.
The Australian tax office groups dental expenses with all the other medical expenses for tax purpose. Which means like all other medical expenses your dental expenses could only be claimed depending on how much you spend and not exactly the amount you spend. You can claim your net medical expenses(which is your total medical expenses less refund from Medicare and Private Health Insurance).
So the way it works is that you can claim 20% of the "Net Medical expenses" over AUD 2162 if your Adjusted Total Income(ATI) is AUD 88000 or less. Same would be 10% of the "Net Medical expenses" over AUD 5500 if ATI is 88000 or more. This is if you are Single. But if you have a Spouse or Children or both; the ATI threshold changes to AUD 176000.
The conditions to claim the above have been changes for the Assessment year 2013/14 which says:
You can claim the offset in 2013/14 only if you received it in 2012/13. So unfortunately if you did not receive any offset in the year 2012/13 you would not be able to claim any in future years.
Or you can claim if the medical expenses are paid for disability aid, attendant care or aged care.
Would provide an example to make the above more clear:
- Zoe spends a total of $3000 on dental and medical bills in the tax year 2012/13.
- Zoe received a total of $500 back from Medicare and $900 back from private health insurance
- Zoe’s Net Medical expenses= $3000 minus $500 (Medicare rebate) minus $900 (private health) = $1600
- As Zoe’s net medical expenses are less than $2162, she can’t claim any medical expense deduction on his tax return.
As Zoe did not receive any offset in 2012/13 she cannot claim any in 2013/14 either.
Ending this one with what i found out regarding what you can and cannot claim in regards to dental expenses:
Can
Payments to dentists, orthodontists or to registered dental mechanics.:)
Can't
Payment to private health insurance provider
Payment for cosmetic dental treatment
Payment for "over-the-counter", non-prescribed medicines like pain-relievers.
Travel or accommodation expenses for your dental work.
Hope this provides a heads up for those who are preparing to sit in that chair; and information for others.
