Child's return

[kschenk]

I have a return for a 4 year old child that has about $10,000 in investment income. He is disabled and the investment funds pay his medical expenses. Can I claim the medical expenses on the child's return, or should they be claimed on the parents return?

[Bees Knees]

If paid using the child's funds, it is deductible on the child's return.

Maybe, however, the child's parents are in a higher tax bracket, and would receive a better tax benefit from the deduction. You would have to run the numbers to see which way is better.

[Mark Goldberg]

Child

If the bills are paid from the child's funds, I see no alternative then to claim on child's return.

[Gretel]

Doesn't this depend on if parents can claim child as their dependend?

[jainen]

Kiddie tax

>>child's parents are in a higher tax bracket<<

Kiddie tax is same tax bracket.