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Effective
March 30, 2010 under the Health Care and
Education Reconciliation Act of 2010, certain medical care tax
benefits are extended to children under age 27 and excluded from gross
income, even if the child does
NOT qualify to be your dependent.
A child who
is under the age of 27 will be considered a dependent of an
employee or self-employed taxpayer for purposes of the general exclusion
from gross income for:
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Reimbursements for medical care expenses under an
employer-provided accident or health plan,
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The self-employed health
insurance deduction,
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The rule that allows a qualified pension or annuity
plan to provide benefits for sickness, accident, hospitalization, and
medical expenses to retired employees, their spouses, and their
dependents, and
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The rule that treats a voluntary employee benefits
association (VEBA) that provides sick and accident benefits to its
members and their dependents as a tax-exempt organization.
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