When your child is filing her tax return, can she claim her medical expense paid by parent

[farhan_ahmad]

When a 19-24 year child is preparing her return can she deduct any medical expenses (more 7.5% of here AGI) that were paid using some else (parent) credit card at the time of service?  The medical insurance is proivded via parent's employer. 

[GeorgeDenseff]

Did she pay you back for the expenses put on the credit card and is there a receipt that shows this?  She cannot legally claim expenses that you paid for her.  You can claim the medical expenses if she is your dependent or qualifying relative.

[rjs]

I'm not sure why you mentioned insurance. She cannot deduct any medical expenses that were paid by insurance, or for which you or she were reimbursed by insurance.

The medical expenses will not reduce her tax unless her total itemized deductions are more than her standard deduction.

[farhan_ahmad]

@GeorgeDenseff 

Would online money transfer from her accoun to my account count as receipt?  Her medical expenses are more than 7.5% of her AGI. If I claim medical expenses on my return then the total medical expense of my family are below 7.5% of my AGI. 

[farhan_ahmad]

@rjsthe only reason i mentioned insurance to clarify she didn't have a medical plan with her employer. None of the expenses were covered by the insurance since I have high deductible plan and I have to pay 100% of expenses until it reach a certain limit.

I understand itemized deductions won't count unless they are higher than standard but I thought entering all itemized decution might give some benefit on state return even when you don't claim on federal.

[GeorgeDenseff]

That would count as a receipt.  You both need to keep that information with your tax records.  Try entering the expenses that were not reimbursed by insurance and see if it is a better refund than her taking her standard deduction.

[rjs · Accepted solution]

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@farhan_ahmad wrote:

I understand itemized deductions won't count unless they are higher than standard but I thought entering all itemized decution might give some benefit on state return even when you don't claim on federal.

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It might. It depends on the state. Every state has different rules. Go ahead and enter the deductions. TurboTax will figure out whether they will help with the state. Enter all the deductions in the federal section. They will flow to the state tax return if appropriate.

[fanfare]

She can't deduct medical expenses that you paid for her.

[GeorgeDenseff · Accepted solution]

I think she can if she can prove that she reimbursed for the medical expenses and has the bank statement to show that she pay back the amount that was charged on the credit card.