Can i deduct medical expenses i paid on behalf of my sister?

[Doityourself1]

She makes more than $30,000 a year and does not live with me. 

Who can claim the medical expenses on the taxes returns, her or me?

[xmasbaby0]

No.   Sorry----you cannot claim her as a dependent, so the money you paid to help her was a gift.  Gifts to individuals are not deductible.   

[DawnC]

Exceptions exist for claiming non-dependent medical expenses on your tax return. The exceptions allow you to claim medical expenses of someone who is not your dependent. You can claim an exception for any of these people:

• A person who was your dependent either:
  • When the service was performed
  • When the medical expense was paid
• A child of divorced or separated parents. This child is treated as a dependent of both parents. Each parent can claim the medical expenses he or she paid for the child. For this to apply:
  • The child must be in the custody of one or both parents for more than half the year and receive over half of his or her support during the year from his or her parents.
  • One of these must apply to the parents:
    • They’re divorced or legally separated under a decree of divorce or separate maintenance.
    • They’re separated under a written separation agreement.
    • They’ve lived apart at all times during the last six months of the year.
• An individual you would have been allowed to claim as a dependent except one of these applied:
  • He or she received gross income of $4,700 or more in the year.
  • He or she filed a joint return for the year.
  • You (or your spouse if married filing jointly) could be claimed as a dependent on someone else’s return in the current year.

See Pub 502 -  You both can't claim the same expenses.   

[Hal_Al]

There's one unlikely exception, where you can claim the deduction. If your close relative cannot be your dependent because he had more than $4,700 of gross income, but otherwise would have qualified as your dependent (basically that you & other family members provided more than half his support), then you can include in your deductible medical expenses any qualifying medical expenses you paid on his/her behalf just as if he/she was your dependent.

Q. Can she claim the  medical expenses, I paid, on her return? 

A. Simple answer: yes, if it was a gift. 

[Doityourself1]

@Hal_Al @DawnC @xmasbaby0  

If She is in the process of paying me back, does it still count as a gift? or Can she claim the deduction at this point?

Thank you all for your responses.

[Hal_Al]

Q. If She is in the process of paying me back, does it still count as a gift? or Can she claim the deduction at this point?

A. Whether the money was  a gift or a loan, she can still claim the deduction.  She can claim only it in the year the bill was paid.  For example, if you paid the bill in 2023 and she paid you back in 2024, she can only deduct the medical expense on her 2023 tax return, not 2024.