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Medical Expenses claimed thru Tax Return


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#1 BeenTooLong

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Posted 06 December 2010 - 02:39 PM

I am planning surgery next year that will have high out of pocket medical expenses.

The surgeon fees are $6500, and I will only be able to claim around $1300 back thru PHI and Medicare. Plus there will be the anaethetist fee of around $2000, and I'm unsure how much of this I can claim, but I would assume it would be around $500 - $1000.

My hospital stay is covered thru PHI, except for $100 excess.

Therefore I am looking at paying over $6000 for the surgery and have been told I can claim some of this back at tax time.

Does anyone know how much I could claim/have returned?

Thanks.

#2 teb09

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Posted 06 December 2010 - 02:46 PM

From memory you can claim 20% back of medical expenses over $1500.

Here is the link for more info ATO medical expenses

Hope this helps smile.gif

QUOTE(MrsJanine @ Dec 6 2010, 02:39 PM) View Post

I am planning surgery next year that will have high out of pocket medical expenses.

The surgeon fees are $6500, and I will only be able to claim around $1300 back thru PHI and Medicare. Plus there will be the anaethetist fee of around $2000, and I'm unsure how much of this I can claim, but I would assume it would be around $500 - $1000.

My hospital stay is covered thru PHI, except for $100 excess.

Therefore I am looking at paying over $6000 for the surgery and have been told I can claim some of this back at tax time.

Does anyone know how much I could claim/have returned?

Thanks.


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#3 BeenTooLong

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Posted 06 December 2010 - 02:48 PM

Thanks so much, off to have a look!

#4 Swarles Barkley

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Posted 06 December 2010 - 05:00 PM

Don't take it as gospel, but I think the oop portion of your Medicare statement counts too. I was $1700 oop last financial year eith Medicare and I think I remember it being added to the other oop expenses (close to $6000) when I did my tax.

You can claim scripts, non prescription medicines brought from a chemist, optical, dental, physio, chiro and a few other things as part of the oop expense too. It soon adds up. Also, if you claim dental on your phi, keep the receipt for your portion, as this counts (I stupidly threw mine out not realizing).
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#5 BeenTooLong

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Posted 06 December 2010 - 05:02 PM

Thanks, every bit helps!

#6 scasey77

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Posted 07 December 2010 - 01:44 PM

QUOTE(Swarles Barkley @ Dec 6 2010, 03:00 PM) View Post

You can claim scripts, non prescription medicines brought from a chemist, optical, dental, physio, chiro and a few other things as part of the oop expense too. It soon adds up. Also, if you claim dental on your phi, keep the receipt for your portion, as this counts (I stupidly threw mine out not realizing).


This is not entirely true. You have to be careful about what you are claiming as it has to relate to an "illness/condition" as defined by the tax legislation. Physio, chiro and the like can only be claimed if in relation to a specific condition really and in theory you need to be referred to these types of people to be able to make the claim. Non prescription meds are the same thing. So just be careful. It is a pretty grey area at times.
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#7 Camilla

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Posted 07 December 2010 - 02:28 PM

QUOTE(Swarles Barkley @ Dec 6 2010, 06:00 PM) View Post

Also, if you claim dental on your phi, keep the receipt for your portion, as this counts (I stupidly threw mine out not realizing).

You can get a tax statement from your PHI for the whole year and it will have anything they have paid for on it. You don't actually need to have the actual receipt.

As for the amount, it actually reduces your taxable income it isn't how much extra you get back. So if you have $6000 OOP, you can claim 20% of $4500 = $900. If you have a taxable income of $50,000, you end up paying tax on $49,100 insted. Well that is how I think it works. I guess every bit helps.
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#8 BeenTooLong

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Posted 08 December 2010 - 10:08 PM

QUOTE(Camilla @ Dec 7 2010, 12:28 PM) View Post

As for the amount, it actually reduces your taxable income it isn't how much extra you get back. So if you have $6000 OOP, you can claim 20% of $4500 = $900. If you have a taxable income of $50,000, you end up paying tax on $49,100 insted. Well that is how I think it works. I guess every bit helps.

Hmmm. Ok. I don't actually have an income as I am a SAHM. So would my husband need to claim it on his tax return? Or would I just get the full refund? I think I may need to call the tax dept about it!

Thanks everyone for your replies smile.gif

#9 Camilla

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Posted 09 December 2010 - 06:18 AM

Yes it comes off your DH's tax. As a dependent, all the expenses for you and your children come under his tax.
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#10 scasey77

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Posted 10 December 2010 - 03:26 PM

QUOTE(Camilla @ Dec 7 2010, 12:28 PM) View Post

You can get a tax statement from your PHI for the whole year and it will have anything they have paid for on it. You don't actually need to have the actual receipt.

As for the amount, it actually reduces your taxable income it isn't how much extra you get back. So if you have $6000 OOP, you can claim 20% of $4500 = $900. If you have a taxable income of $50,000, you end up paying tax on $49,100 insted. Well that is how I think it works. I guess every bit helps.


It doesn't actually come off your taxable income - it comes off your tax payable. So if your taxable income is $50,000, you will pay tax on $50,000. Your medical rebate will then come off that tax amount.

As for whether you claim it or your DH. Some tax offsets can only reduce your tax payable to nil. So if you ahve no income and therefore no tax he would need to claim in that circumstance. However, some offsets can be fully refunded to you regardless of tax payable amount in which case you could claim it.

Having been on matrenity leave for so long I can't for the life of me remember wihch category the medical rebate falls into so best to have your husband claim it just in case I think.
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#11 BeenTooLong

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Posted 11 December 2010 - 12:03 AM

OK, thanks guys. You have mde things a little clearer for me.

This year was the first year I'd had no income for tax purposes, so I'm a ittle confused about how it all works being a dependant!

#12 *****030812

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Posted 02 March 2011 - 02:55 PM

QUOTE(scasey77 @ Dec 7 2010, 01:44 PM) View Post

This is not entirely true. You have to be careful about what you are claiming as it has to relate to an "illness/condition" as defined by the tax legislation. Physio, chiro and the like can only be claimed if in relation to a specific condition really and in theory you need to be referred to these types of people to be able to make the claim. Non prescription meds are the same thing. So just be careful. It is a pretty grey area at times.


my hubby was advised the same for chiro etc, that you need an actual referral from your gp to be able to claim the OOP expenses at tax time.





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