Importd sperm and Medicare tax offset questions

[Indadhanu]

No idea how this works so bear with me...

If your net medical expenses are over the Australian Tax Office’s (ATO) threshold, you can claim an offset of 20 per cent (20 cents in the dollar) in your tax return.

To claim the medical expenses tax offset in your tax return, you need to know the total amount of medical expenses you incurred for yourself and your dependants. You then deduct any refunds from Medicare Australia, your private health fund or any other reimbursements that relate to those expenses receiving during the financial year.

So... I assume it means out of pocket expenses can be claimed?
Ok, so can we claim the sperm we've imported? We've paid $1060 per month just for sperm, and we can't get any of that back through Medicare right now, but our clinic said they think you can claim it at the end of the financial year, as well as the registration fee for the clinic etc. Does anyone know anythign about this?

Also, my partner is the one having the treatment, but because we are registered under the Family Safety Net (whatever it's called lol) I can claim expenses off my income right? Seems silly to do it the other way around since my partner won't be paying tax so it won't actually offset anything! So I can claim on behalf of us against on my tax return?

[~me~]

What you are describing is once you hit $1500 of out of pocket medical expenses, you can get 20 cents in the dollar. It doesn't make any difference if Medicare or PHI have paid a portion, it's any out of pocket health expenses.
At the end of financial year, request Tax statement of benefits from your PHI and also Medicare and they will have any claims you have put in and show your out of pocket expenses and the amount they contributed.
So keep every receipt, especially the ones for the sperm as you probably can't claim any of that?, inlcuding Pharmacy scripts, again you can go to your Pharmacy and request a Tax statement of your or partner.
Last year I think they were claimed against my DH?
The ATO website has a very detailed summary of what you can claim. We always have our Tax done by and agent (DH's brother), he works out who it is best offset against usually.

HTH

ETA: I just googled ATO medical expenses and it brought up exacty what you need in the first search item.

[Indadhanu]

Imported sperm isn't mentioned anywhere on the ATO site, so I'm not sure if it is ok or not, especially since it doesn't have a benefit number on Medicare ...?


Has anyone who has ever actually used imported sperm know whether or not you can claim it at the end of the financial year?

ETA: All the ATO says is...

Medical expenses include payments:

* to dentists, orthodontists or registered dental mechanics
* to opticians or optometrists, including for the cost of prescription spectacles or contact lenses
* to a carer who looks after a person who is blind or permanently confined to a bed or wheelchair
* for therapeutic treatment under the direction of a doctor
* for medical aids prescribed by a doctor
* for artificial limbs or eyes and hearing aids
* for maintaining a properly trained dog for guiding or assisting people with a disability (but not for social therapy)
* for laser eye surgery, and
* for treatment under an in-vitro fertilisation program.

Expenses which do not qualify as medical expenses include payments made for:

* cosmetic operations for which a Medicare benefit is not payable
* dental services or treatments that are solely cosmetic
* therapeutic treatment where the patient is not formally referred by a doctor – a mere suggestion or recommendation by a doctor to the patient is not enough for the treatment to qualify; the patient must be referred to a particular person for specific treatment
* chemist-type items, such as tablets for pain relief, purchased in retail outlets or health food stores
* inoculations for overseas travel
* non-prescribed vitamins or health foods
* travel or accommodation expenses associated with medical treatment
* contributions to a private health insurer
* purchases from a chemist that are not related to an illness or operation
* life insurance medical examinations
* ambulance charges and subscriptions, and
* funeral expenses.

[butterfly_warrior]

My tax agent feels that it is appropriate to claim our embryo storage fees under medical expenses, so I can't see why the costs of importing sperm can't be claimed. I'm not sure that there is an actual list of what counts and what doesn't, would it be worth a call to the ATO?

[Indadhanu]

THanks BW Does embryo storage have a Medicare Benefit number?

[~me~]

Alot of things that are claimable won't have a benefit number from Medicare or your PHI, the description should be enough to put it with your Health expenses. You could also see if the IVF clinic would be willing to write a statement saying the sperm was used for an IVF procedure.

ETA: Look up MBS online for item 13218 and see if this fits the description.

[Indadhanu]

Oh, thats a good idea! Being able to claim it as an offset would really make a huge difference at the end of the financial year. Expensive stuff that it is!

[butterfly_warrior]

embryo storage isn't claimable through medicare - no numbers at all. Also not claimable through PHI.

BW