Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi and welcome to Just Answer!There are certain requirements to consider the person your dependent for tax purposes. While requirements are similar for medical expenses deduction - there are some differences - in particular -you can include medical expenses you paid for an individual that would have been your dependent except that:
--He or she received gross income of $3,700 or more in 2011,
--He or she filed a joint return for 2011, or
--You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2011 return.Still the Domestic Partner has to live with you all year as a member of your household and your relationship should not violate local law, andYou should provide to that person over half of the support in the tax year.For medical deduction purposes - you do not need to claim that person as a dependent.Please see for reference IRS publication 502 - www.irs.gov/pub/irs-pdf/p502.pdf
Let me know if you need any clarification or help with determination.
I'm not sure I understand your response. I was less concerned about the medical expense deduction and more trying to figure out it I could claim them as a Tax Dependent on this form for my benefits and save money with pre-tax benefit deductions instead of post-tax like I do now. I was citing the medical expense deduction as something that I could do with my domestic partner - I am still unsure about the tax dependent part for this form. The part throwing me off is the or condition of the first choice - I cannot claim them as an exemption on my federal taxes because of the gross income only. Yet I meet all three of the other conditions - where are they getting that from? If I go by the OR in that statement, I should be able to do this. Yet I have not done it yet because it does not seem right to me reading Pub 501 and Section 152. Also, if I am able to do it can I then use my healthcare FSA to pay for both of our medical expenses? The actual medical deduction I care less about because I will not more than likely spend more than the 7.5% (or more if the amount changed for next year, I have not checked but I think it has) in medical expenses that are required before I can start claiming that deduction.
As you already notes - rules to claim a person as a depended are different for different reasons. Rules are different based on purpose.I was less concerned about the medical expense deduction and more trying to figure out it I could claim them as a Tax Dependent on this form for my benefits...Unfortunately - the Domestic Partner may not be claimed as a dependent for health insurance purposes. Only the spouse and children under the certain age may be claimed as dependents for such purposes.The part throwing me off is the or condition of the first choice - I cannot claim them as an exemption on my federal taxes because of the gross income only.When you are reading IRS publication 501 - we are talking about claiming dependents for tax deduction purposes - these are different rules.Yet I meet all three of the other conditions - where are they getting that from? If I go by the OR in that statement, I should be able to do this.Now we are talking about dependent for medical deduction purposes. Rules that determine dependent for medical deduction and FSA purposes are same. Thus - you may cover medical expenses (including health insurance premiums) for the Domestic Partner via FSA. However - as you mentioned - that you are less concerned about the medical expense deduction...Still that is the only way to to pay health insurance premiums with pre-tax money.
Also, if I am able to do it can I then use my healthcare FSA to pay for both of our medical expenses?Yes - you may do so - and that was my point concerning medical expenses. Please be aware that health insurance premiums are included into medical expenses. So you may use FSA to pay health insurance premiums and other medical expenses with pre-tax money - but the total amount is limited by $2500 starting 2013.
Please be sure to ask for clarification if you need any help.
I am here to help you.