Can my children claim medical expense?

Question

I have way more deductions than I need to pay no income tax this year, and too little income to hit AMT.

Both my children will have to pay income tax. Okay, just a couple hundred dollars, but still...

Can they take their own medical expenses, eventhough I paid them?

One son is 15; under what circumstances can I just add his income to my return? The other is 21.

========================================= MODERATOR'S COMMENT: If your son(s) paid his medical expenses from his own funds, he is allowed to report them on his schedule A.

Bob Sandler · Accepted Answer

You cannot "just add his income to your return" as if it were your income. You can elect to report his income on your return, using Form 8814, if his income is only interest and dividends, is over $900 and less than $9,000, and he did not make any estimated tax payments. You can do the same for the

21-year-old if he is a full-time student, in addition to meeting the other requirements.

Bob Sandler

Tom · Answer

Interest, dividends, and a capital loss on the 15yo. Does that knock it out? I have filed his returns for years, so is changing this year okay?

========================================= MODERATOR'S COMMENT: Yes, having a capital loss, reported on schedule D, does disqualify you from including child's income on your tax return.

Bob Sandler · Answer

Yes, it's okay to change. Each year is independent. And, as the moderator said, you have no choice this year. You cannot include your son's income on your return. He has to file his own return.

I'm not sure what you mean by "I have filed his returns for years." If you mean that you have been reporting his income on your return, you may have been paying more tax than necessary. If you are ever in a position to report your son's income on your return in the future, you should compare the results to filing a separate return for him. You may very well find that the total tax on the two separate returns is lower than if you report his income on your return.

Bob Sandler

Rich Carreiro · Answer

The moderator is correct, but two expansi1) Any sale of a capital asset that has to be reported on   Sched D, be it for gain or for loss, disqualifies you from   including the child's income on your return.2) If there's a capital loss, and any of it gets carried forward,   you are disqualified from including the child's income on   your return until the loss is used up.--Rich Carreiro

Can my children claim medical expense?

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