Medical Expenses – Tax Relief
The most commonly overlooked tax relief available to all individuals is related to certain medical and dental expenses. These are expenses incurred by the taxpayer and their dependents that have not been reimbursed to them through private medical insurance. Tax relief on such expenses is available in 2012 at the standard rate of tax, which is 20%
It’s possible to claim income tax refunds for the last four years, so for families with children, this could add up to quite a sizeable rebate. Claims for medical expense relief can be made on a “Form Med 1”, available for download on revenue.ie. Individuals claiming tax relief on dental costs should ask their dentist to complete and sign a “Med 2 Form”.
You are also entitled to tax back on expenses incurred not just by you and your immediate family, but also by some relatives, including parents, grandparents and siblings, where these medical expenses are paid by you. Remember, not only can you claim tax back on Irish medical expenses for the above individuals, but also if you pay for medical expenses anywhere within the EU.
What Medical Expenses are covered?
As stated above, if you have young kids or you suffer with a health condition, you are probably in the doctor’s surgery round the clock and nursing massive medical bills as a result.
A fifth of your medical bills is tax relief including doctors’ and consultants’ fees, drugs or medicine prescribed by your doctor, speech and language therapy, physiotherapy, laser eye surgery and IVF.
Even expenses that arise from a dietary condition can qualify for tax relief. If you must eat gluten-free foods because you’re a coeliac or diabetic, you should be able to claim back a fifth of the cost of that food – as long as you get a letter from your doctor confirming that you have the condition and are buying that food on your doctor’s advice.
If you’re paying through the nose in dental fees thanks to your sweet tooth, you can get tax back on certain dental bills, including crowns and root canal treatment. Not all dental bills qualify for tax relief however – if you have to get a tooth extracted or a filling for example, you won’t get any tax back.
The tax relief isn’t always restricted to medical expenses. If your child is suffering from a life-threatening illness, you should also be able to claim tax relief on certain expenses arising from that illness, including transport to and from hospital.
If your medical bills for this year run into the thousands, your tax rebate should easily cover the cost of this year’s property tax.
I have incurred medical expenses – what will I do?
If the mere thought of tackling your taxes brings on a headache, then consider hiring the expertise of a professional tax adviser. Irishtaxback.ie operate a “No Refund, No fee Policy”, so we will only charge a fee if we can secure a refund for you.
Log on to http://irishtaxback.ie/paye-individuals/medical-expenses/ for an example or contact Elma in Irishtaxback.ie 01-4428373 or elma@irishtaxback.ie to find out if you are due money back on your medical expenses.
