Are you entitled to a dental tax rebate this financial year?
When tax time arrives, many Australian citizens are unaware that they could very well apply for a taxation rebate and consequently get some money back for their out of pocket net dental expenses.
So read on, learn and find out whether you’re eligible for a dental tax rebate in the 2012/13 financial year upon lodging your Australian tax return:
Am I eligible for a medical taxation rebate?
Net dental expenses are the medical expenses you have paid directly out of your pocket (after any health insurance or Medicare claims have been paid). If your medical expenses incurred in the financial year exceed $2120 and your adjusted taxable income is below the threshold of $84,000 for singles or $168,000 for a couple or family, you are entitled to claim a tax offset of 20% of your net medical expenses over $2120.
For example, for every dollar you pay after $2120, you can claim 20 cents back on each dollar spent. The good news is that there is no upper limit on the amount you can claim. The tax offset also applies to all medical expenses incurred for yourself and/or any dependents (partner and children).
If your adjusted taxable income is above $84,000 for singles or $168,000 for a couple or family in 2012/13 are able to claim a reimbursement of 10% for eligible out of pocket expenses incurred in excess of $5,000 (indexed annually). The family threshold increases by $1,500 for each dependent child after the first.
What is a medical expense?
The Australian Tax Office regards payments to legally qualified doctors, nurses, pharmacies and both public/private hospitals as a medical expense. This means any payment to a dentist, orthodontist or registered dental mechanic qualifies as a medical expense; even if it’s a cosmetic dental procedure.
DISCLAIMER: Please note that this information is correct as per the Australian Taxation Office website and is intended to be taken as general information. It does not constitute as financial or accounting advice. Therefore, we encourage you consult a qualified accountant or your dentist to help determine the extent the medical taxation rebate could apply to your personal circumstance.
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