Question

Ms. Judy Connor and her spouse, Jeff Connor, have 2019 medical expenses which total $4,330. While Ms. Connor has 2019 Net Income For Tax Purposes of $150,000, Jeff’s only income is $360 in savings account interest. They have three children, Justice is 12, has 2019 medical expenses of $4,600 and no Net Income For Tax Purposes. James is 21, has 2019 medical expenses of $8,425 and Net Income For Tax Purposes of $8,250. Julian is 23, has 2019 medical expenses of $120 and Net Income For Tax Purposes of $6,000. Ms. Connor pays all of the medical expenses. Determine Ms. Connor’s medical expense tax credit for 2019

Answer 1

1) Since James & Julian are both adults, medical expenses incurred by parents on them will not be allowed as tax credit for their own income.

2) Justice,12, has no income but medical expenses of $4600, will not be allowed any credit since there is no income to set off the expense tax credit from and the same shall be lapsed.

3) James, 21, having medical expenses of $8425 shall set off the same as tax credit from his income,upto the extent of $8250, being allowed maximum upto the amount of income.

4) Julian, 23, shall be allowed medical expenses of $120 as tax credit to be set off from net income of $6000.

5) Jeff Conor, having only $360 of savings account interest shall not be allowed any tax credit out of medical expense as the same shall already be exempted from tax.

6) Ms Judy Connor, shall be allowed complete $4330 as tax credit from net income of $150000.