Hi everyone, I just want to ask that I am living with my husband and my son. My son is 23 years old , full time student, earning $5200 year. so Can I put him dependent in Medicare levy question or not?
Also, for Medicare levy, his income will be included in family income or not. I tried reading in ato website, but didn't understand much. I would appreciate if someone answer me in simple language.
Thanks
Hi @Sehgal,
When looking at the Medicare Levy, there's a few categories that a dependant can fall into. Your son, due to their age, would fall into the 21-24 year old. For them to be a dependant, they'll need to be receiving full-time education at a college or university (Sounds like they are), and they need an adjusted taxable income of less than $282 plus $28.92 for each week you maintained them. This part can be a little confusing, so I'll do my best to explain it.
You're going to first need to work out your son's Adjusted Taxable Income (ATI). That link will take you to our page that runs through how to do this. Start by reading about what ATI is - it gives you an idea of what can be included in the income for it. Then you'll need to determine whether you maintained them for the whole year as a dependent or for only part of the year. If it's for the whole year, go ahead and read through Worksheet 1b at the bottom of the page. Read through the table row by row and make note of your son's income for each type in the rows. If you're confused about any of the rows, there's a section further up under "working out the ATI of a person" that explains each row better. It then tells you to add up everything from rows A-H and subtract row J from this value. This will give you their ATI for the period. If you only maintained them for part of the year, there's a section on the page that talks through what to do instead.
Once you've worked out their ATI, add up $28.92 for each week you maintained them during the year, then add $282 to this number. If your son's ATI is less than this amount, you'll consider them a dependant.
As for your second question, his income would not be included in your family taxable income. Your family taxable income is the combined income of you and your spouse.
Hi @Sehgal,
When looking at the Medicare Levy, there's a few categories that a dependant can fall into. Your son, due to their age, would fall into the 21-24 year old. For them to be a dependant, they'll need to be receiving full-time education at a college or university (Sounds like they are), and they need an adjusted taxable income of less than $282 plus $28.92 for each week you maintained them. This part can be a little confusing, so I'll do my best to explain it.
You're going to first need to work out your son's Adjusted Taxable Income (ATI). That link will take you to our page that runs through how to do this. Start by reading about what ATI is - it gives you an idea of what can be included in the income for it. Then you'll need to determine whether you maintained them for the whole year as a dependent or for only part of the year. If it's for the whole year, go ahead and read through Worksheet 1b at the bottom of the page. Read through the table row by row and make note of your son's income for each type in the rows. If you're confused about any of the rows, there's a section further up under "working out the ATI of a person" that explains each row better. It then tells you to add up everything from rows A-H and subtract row J from this value. This will give you their ATI for the period. If you only maintained them for part of the year, there's a section on the page that talks through what to do instead.
Once you've worked out their ATI, add up $28.92 for each week you maintained them during the year, then add $282 to this number. If your son's ATI is less than this amount, you'll consider them a dependant.
As for your second question, his income would not be included in your family taxable income. Your family taxable income is the combined income of you and your spouse.
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