Claiming Invalid Carer Tax Offset

Understanding the Invalid and Invalid Carers Tax Offset

The Invalid and Invalid Carers Tax Offset is designed to provide financial relief for individuals who maintain an invalid or an invalid carer. Here’s a comprehensive guide to help you understand who qualifies, the criteria, and how to calculate the offset.

Who Can Claim the Offset?

You may be able to claim the tax offset if you maintain an invalid or an invalid carer who is 16 years old or older and is receiving certain government payments. The eligibility criteria vary slightly depending on whether you are maintaining an invalid or an invalid carer.

Maintaining an Invalid

To claim an invalid tax offset, the invalid must be:

• Either your:

  • Spouse
  • Child (16 years old or older)
  • Sibling (16 years old or older)
  • Spouse’s child (16 years old or older)
  • Spouse’s sibling (16 years old or older)
  • Parent
  • Spouse’s parent

• Receiving either:

  • A disability support pension under the Social Security Act 1991
  • A special needs disability support pension under the Social Security Act 1991
  • An invalidity service pension under the Veterans' Entitlement Act 1986

• Either:

  • An Australian resident for tax purposes
  • Your spouse or child who is not an Australian resident for tax purposes, and you have a domicile in Australia.

Maintaining an Invalid Carer

To claim an invalid carer tax offset, the carer must be:

• Either your:

  • Spouse
  • Parent
  • Spouse’s parent

• Caring for either:

  • Your or your spouse’s invalid child (16 years old or older)
  • Your or your spouse’s sibling (16 years old or older)

• Receiving a carer payment or carer allowance under the Social Security Act 1991 for that person

• Wholly engaged in providing care to an invalid person receiving either:

  • A disability support pension under the Social Security Act 1991
  • A special needs disability support pension under the Social Security Act 1991
  • An invalidity service pension under the Veterans' Entitlement Act 1986

Income Limits

You cannot claim the tax offset if:

• The invalid or carer is your spouse, and your adjusted taxable income in 2023-24 is more than $112,578.
• The invalid or carer is not your spouse, and your and your spouse’s adjusted taxable income in 2023-24 is more than $112,578.

Calculating the Offset

To calculate the amount of the tax offset you can claim, you need to use the Gotax inbuilt offset calculation system.. Here’s a general outline of the steps involved:

1. Identify Eligibility: Confirm that you meet the criteria for maintaining an invalid or invalid carer.
2. Determine Income Thresholds: Ensure your adjusted taxable income (and your spouse’s, if applicable) is below the specified limit.
3. Use the Calculator: Input your details into the Gotax Online System to determine the offset amount.
4. Claim the Offset: Report the calculated amount at the "Other Tax Offsets" section in your tax return.

Important Considerations

• Record-Keeping: Maintain accurate records of the invalid or carer’s eligibility and the government payments they receive. This documentation is crucial for substantiating your claim.
• Government Payments: Ensure that the invalid or carer is receiving the specified government payments under the Social Security Act 1991 or the Veterans' Entitlement Act 1986.
• Residency Status: Verify the residency status of the invalid or carer, especially if they are your spouse or child who is not an Australian resident for tax purposes.

Examples

Example 1: Claiming for a Spouse Jenna maintains her spouse, who receives a disability support pension under the Social Security Act 1991. Jenna’s adjusted taxable income for 2023-24 is $100,000. Since her income is below the threshold, she can claim the invalid tax offset.

Example 2: Claiming for a Parent Rajesh supports his parent, who receives an invalidity service pension under the Veterans' Entitlement Act 1986. Rajesh’s adjusted taxable income, combined with his spouse’s, is $90,000. He is eligible to claim the invalid tax offset for maintaining his parent.

Conclusion

The Invalid and Invalid Carers Tax Offset can provide significant financial relief if you are eligible. Ensure you meet the criteria, maintain proper documentation, and use theGotax Online System to determine the offset amount. If you’re unsure about your eligibility or how to calculate the offset, consider consulting a tax professional.

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