Orthodontia Claim

[Guest BeneGal]

:confused:

Can someone participating in a medical reimbursement account (of a flex plan) claim orthodontia expenses for a grandchild that they have paid? The grandchild does not live with them but the parents could not afford it so they paid it for them. My answer was no because the child was not their legal tax dependent, but I would appreciate confirmation on that.

[papogi]

You are correct. Reimbursable expenses under flex must be incurred by the employee, spouse or dependent as listed below (Section 152):

1. Live with taxpayer for the whole year, or be related to the taxpayer.

2. Be a U.S. citizen.

3. The taxpayer must provide more than half of the total support of the dependent. If the person is a foster child, the parents typically reveive state funds to cover the child’s expenses. If the parents still provide more than half of the support, then the foster child is a dependent. If the parents do not provide more than half of the support, the parents may still be able to deduct these medical expenses as charitable contributions on Schedule A (they should see Pub. 17).

It is item #3 that these grandparents will have the problem with.