Health/Medical expenses

[tuktuk]

Hi, in the year 2006 I earned around 50k salary.
On behalf of my wife I paid around €4500 in relation to medical expenses (pregnancy related).
I'm going to claim the tax back on it. How much will get back? I mean I want to know hows the relief calculated.

Thanks a million.

 

[ClubMan]

Assuming that all of the expenses qualify for tax relief and none were otherwise reimbursed (e.g. via private health insurance etc.) then you would presumably get (€4,500 - joint "excess" of €250) @ 41% = €1,742? Although it's possible that you would only get 20% relief on some of the amount if you are just inside the 41% bracket as I think you were.

 

[purpeller]

I claimed for almost €2000 worth a couple of years ago and only got €254 back - all except the first €125 (I am single) qualified for relief.
I was on only 20% tax.

 

[tuktuk]

Assuming that all of the expenses qualify for tax relief and none were otherwise reimbursed (e.g. via private health insurance etc.) then you would presumably get (€4,500 - joint "excess" of €250) @ 41% = €1,742? Although it's possible that you would only get 20% relief on some of the amount if you are just inside the 41% bracket as I think you were.

Thanks for your reply clubman. How come I was inside 41% bracket if I earned 50k last year?

 

[ClubMan]

I don't know if you did - you'd need to check your P60/payslips. I was just going by [broken link removed] which suggests that a married couple with one spouse earning €50K would pay at least some tax at 42% (not 41% since this only came in this year) in 2006. But your situation/credits may be different.

**************************************************
Calculate end of year tax returns (Married)
Tax year for calculations is 2006
(Form P21C)
Selected currency is Euro €
**************************************************

INCOME FROM EMPLOYMENTS €:
Income for Self 50000.0
Income for Spouse 0.0
Other Incomes/Benefits 0.0
--------
Gross Statutory Income 50000.0


CREDITS (@20%)€:
Personal Allowance 16300.0
PAYE Allowance 7450.0
Medical Insurance Allowance 0.0
Service Charge Allowance 0.0
--------
Total Credits (@20%) 23750.0


ALLOWANCES (@42%) €:
Med Expenses, Perm Health 0.0
Expenses 0.0
--------
Total Allowances 0.0

COMPUTATION OF NET TAX PAYABLE BY YOU €:
Gross Statutory Income 50000.0
Less Allowances before tax 0.0
--------
Taxable Income 50000.0
Which is chargeable as follows:
41000.0 @ 20% = 8200.0
9000.0 @ 42% = 3780.0
--------
Income Tax due 11980.0
LESS €:
Tax Credits (23750.0 @20%) 4750.0
Total Income Tax due 7230.0
Net Tax deducted under PAYE 0.0
--------
Tax Underpaid € 7230.0