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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I withdrew a lump sum from my superannuation to pay

Customer Question

I withdrew a lump sum from my superannuation to pay for dental work.I received a payment summary from my super fund.Do I include it in my tax return and can I claim my dental costs as a tax deduction.Hope you can help me. Scotty Roberts
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.
Q1: Do I include it in my tax return?A1: Whether or not you have to include the amount in your tax return depends on your age. SEE BELOW: If aged under 55, taxed at 22%If aged between the preservation age and 59 years, the first $185,000 is tax free and the balance is taxed at 17% REFERENCE SOURCE:http://www.australiansuper.com/tools-and-resources/questions-and-answers/superannuation-faqs/fees-and-tax/do-i-have-to-pay-tax-on-lump-sum-withdrawals.aspx ADDITIONAL INFO:http://www.superguide.com.au/accessing-superannuation/accessing-super-early/legal-reasons-to-cash-your-super Q2: can I claim my dental costs as a tax deduction.A2: For tax purposes, the Australian Tax Office lumps dental expenses together with other medical expenses. Unfortunately, this means you can’t claim back your dental expenses ‘dollar for dollar’ – but there are some savings to be had.If you have more than $2060 net medical expenses (your total medical expenses minus Medicare and private health rebates) within one tax year, you can claim 20% of the amount above $2060 as a deductible expense. REFERENCE SOURCE:https://www.etax.com.au/dental-expenses/ Let me know if you require further assistance with this matter.