It is important to use the correct tax code for your private health otherwise the tax calculations made by LodgeiT may be different than what you would expect.
Visit this link to know more about tax coding:
Private health insurance policy details 2024
Completing the Medicare questions
FAQ:
Q: How to enter Private Health details when spouse died during the year? (Client has partial year claim C (Claiming your share of rebate) and partal year claim A (No dependants) because her husband died during the year
A: ATO reference here
An excerpt from this page states:
Claiming the rebate for your spouse
You can choose to claim your spouse’s rebate entitlement (as well as your own) if you satisfy all of the following three conditions:
- You must have a spouse on the last day of the income year (this includes if your spouse died during 2020–21).
- You and your spouse must be covered by the same complying health insurance policy for the same period of time.
- You and your spouse must agree to this before you complete and lodge your tax return.
Based on this, and the assumption that your clients meet the above three conditions, your client would be using code C for their 2020-21 Income tax return.
Tax Codes
Reasons for proposed adjustment (Tax Code)
