Medical Expense Relief

Y

ystachnowski

Guest
Hello,

I have a question to medical expense relief. I was trying to find out how much relief is given to you in a claim but all I could find on revenu.ie was this sentence:

The relief is granted at the highest rate of tax at which you are chargeable for the year of claim.

I don't really understand this. I know there's taxbands 20 and 42% but how is the relief determined?

Thanks a lot for your help in advance.
 
You add up all qualifying (see the Revenue leafets for details) medical/dental expenses, then you deduct any amounts that were otherwise reimbursed (e.g. by private health insurance), then you deduct the €125 (individual claim) or €250 (joint/family claim) "excess" and what remains qualifies for relief at your marginal rate (i.e. 20% or 42% - whichever you pay normally).
 
You can recover all your receipted medical expenses ie doctors' fees, prescriptions, physio expenses, nursing home, outpatients etc. less the first €250 (I think ) for a joint or family return.
This is done at the end of the current tax year and you will be able to claim at your top rate of tax, probably 42% when you send in the Med1 form along with your normal tax return.
You may be able to recover some GP costs depending on your health plan from VHI, BUPA etc.
Any shortfall is claimable against tax.
 
Wow, that was a fast response. Thanks a lot.
I know how to do a claim...what I was wondering is, how it is determined that you get 20% or 42% back. Because you pay 20% of tax normally on the first 29K (or so) and anything abover that you're paying 42%. Does that mean you can get tax relief at 42% once you actually earn more than the first tax band?
 
ystachnowski said:
Does that mean you can get tax relief at 42% once you actually earn more than the first tax band?
Click to expand...
Yes. Although if you earn just above the standard rate band and only pay 42% tax on a small amount of your income your MED1/2 claim may involve some relief at 42% and some relief at 20% I presume.
 
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