DanielV01
Expert Alumni

Deductions & credits

Yes to the medical expenses, but no to the tuition expenses.  When it comes to claiming deductions for medical expenses, the IRS does allow you to claim deductions that you pay on someone who would otherwise qualify as a dependent except for their income.  Since your daughter turned 24 this past year, you could only claim her as a dependent if her income was less than $4150.  It wasn't significantly more than that, but it was enough that you could not claim her.  However, if you covered her medical expenses, you may claim these as part of your itemized deductions.

Tuition expenses are different, however.  By Publication 970 (IRS guide on Benefits of Education), if your daughter is not your dependent, then she can claim the Education Expenses even if you paid for them.  This works both ways: When you could claim her as a dependent, you could claim her education expenses even if they were paid by student loans she must repay.  Unfortunately, because her income is so low, she gets no benefit to claiming education expenses unless she still qualifies to claim the American Opportunity Credit.


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