Updated : November 2013
Please reply with any comments.
I am particularly interested in anyone with personal experience of claiming tax credits for medical or dental work carried out aboard
or claiming for nursing care expenses who would be willing to shares their experiences with us
SUMMARY
All taxpayers can claim tax relief for certain medical expenses paid.
This key post attempts to summarise this tax relief and deals only with the situation in 2013. This is an overall summary should help most people. There are special situations like those with certain long term illnesses. I have not covered all of these cases in detail at this time.
This post is a summary of the Revenue leaflet IT 6 which has more details on a lot of these topics
The general summary is
You can only claim tax relief at the standard tax rate (currently 20%), even if you pay the marginal tax of 41% on some of your income. There is no relief from income levies or PRSI.
The treatment must be carried out by a medical practitioner i.e. Medical doctor, physiotherapist, speech therapist.
Alternative medical treatments(i.e. acupuncture) are not covered unless carried out by a medical practitioner.
You may claim tax relief in respect of any qualifying health expenses paid by you in respect of any individual. It does not have to be a relative. So, if you are paying for your mother's doctors fees, you can claim them as medical expenses on your tax return.
There is no upper limit to the amount of expenses which may be claimed. However, the maximum tax credit which will be given is the amount of tax which you have paid in that tax year.
The following are covered, if medically necessary and carried out by a qualified medical practitioner
Vaccinations are preventative, so are covered.
There are a number of more complex situations which I have not covered in detail
- Long term nursing care
- The costs for parents associated with having a critically ill child in hospital.
- The costs associated with long term chronic conditions
People with long term chronic conditions can claim some of the costs associated with these conditions. Examples of this are food manufactured specifically for coeliacs or diabetics. Patients with kidney disease can claim the cost of travel to and from hospital for dialysis. The details of all these situations are not covered in this post. If you are dealing with a claim of this type for the first time, I would suggest that you read the Revenue leaflet which is linked to at the top of the post, ask a Doctor what you can claim, or ask any relevant patient associations for help.
The issue of nursing home expenses is more complex and is dealt with in this post
http://www.askaboutmoney.com/showthread.php?t=173961
Some expenses associated with having a critically ill child can be claimed for. See the Revenue leaflet IT6 for more information.
In general, if you have exceptional medical bills, you should investigate if tax relief can be claimed.
Dental treatment
Only certain specialist dental treatments are covered. Your dentist will have to fill out a Med2 form for the treatment. If you have a treatment which is covered, your dentist will know this and give you the Med2 form.
Dental treatment which is covered
Treatment abroad is covered, as long as the doctor or dentist is licensed to practice in their home country.
I don’t know if foreign dentists are willing to fill in Med2 forms for Irish patients. Any first hand knowledge of this would be appreciated.
What is not covered
If you are entitled to recoup money from your health insurance for medical costs, you cannot claim tax credits for this, as you did not pay the bill.
An example is a GP bill of 55euro.
Your health insurance pays you 30 euro per visit. You pay €25 (55 - 30)
You can claim tax relief on the €25 euro at 20% i.e. a tax credit of €5
The claim forms online or paper Med1 claim forms have a section for payments from other sources to facilitate making a claim in these circumstances
Also, if you pay more than 144 euro in the month for medication, in most cases, you can claim everything in excess of 144 back through the Drugs Repayment Scheme.
There is more information about the DPS here.
http://www.citizensinformation.ie/en/health/entitlement_to_health_services/drugs_payment_scheme.html
You can claim tax credit only for the €144 that you have paid.
How to claim
There are 3 ways to claim the tax relief on medical expenses.
If you use The Revenue PAYE Anytime online service to file your tax returns, there is a section for Medical expenses.
Use a Med1 form and submit it to your local Revenue office
If you are filing a Form 11, there is a section for Medical expenses.
How it works
Medical expenditure: €1,000
Tax credit at 20%: €200
If you claim via Med1, Revenue will send you a cheque for €200.
If you claim for it on your annual tax return, Form 11 via ROS, or PAYE Online it will appear as
Total Income Tax: €33,650
Personal Credit : €1,650
Medical expenses: €200
Payable: €31,800
Do not submit receipts but you must keep all relevant receipts for 6 years. The Revenue do spot checks . If you claim from a private health insurer ( VHI, Laya, Aviva, HSF), you need to submit original receipts and they do not send them back to you. However, the complete claim documentation from the health insurance company can be used instead of receipts for a tax claim.
You can only claim at the end of the tax year. If you have treatment in one year and you pay for it in another year, you can claim for these expenses in either year.
You must claim within 4 years. If you have expenses from 2009, you must claim for them by the end of 2013.
Expenses for this year, 2013, must be claimed by the end of 2017.
Please reply with any comments.
I am particularly interested in anyone with personal experience of claiming tax credits for medical or dental work carried out aboard
or claiming for nursing care expenses who would be willing to shares their experiences with us
SUMMARY
All taxpayers can claim tax relief for certain medical expenses paid.
This key post attempts to summarise this tax relief and deals only with the situation in 2013. This is an overall summary should help most people. There are special situations like those with certain long term illnesses. I have not covered all of these cases in detail at this time.
This post is a summary of the Revenue leaflet IT 6 which has more details on a lot of these topics
The general summary is
You can only claim tax relief at the standard tax rate (currently 20%), even if you pay the marginal tax of 41% on some of your income. There is no relief from income levies or PRSI.
The treatment must be carried out by a medical practitioner i.e. Medical doctor, physiotherapist, speech therapist.
Alternative medical treatments(i.e. acupuncture) are not covered unless carried out by a medical practitioner.
You may claim tax relief in respect of any qualifying health expenses paid by you in respect of any individual. It does not have to be a relative. So, if you are paying for your mother's doctors fees, you can claim them as medical expenses on your tax return.
There is no upper limit to the amount of expenses which may be claimed. However, the maximum tax credit which will be given is the amount of tax which you have paid in that tax year.
The following are covered, if medically necessary and carried out by a qualified medical practitioner
- Doctors fees ( GP and consultants)
- Prescription Medication
- Hospital Fees
- Diagnostic procedures ( X-rays, MRI scans etc)
- Medical devices ( hearing aids, wheelchairs, false eyes etc) and repair and maintenance of the sevices
- Physiotherapy
- Orthoptic treatment
- Speech and language therapy
- Educational psychological assessments for children
- Ambulance transport
- IVF treatment
- Some specialist dental treatment
- Nursing home fees
Vaccinations are preventative, so are covered.
There are a number of more complex situations which I have not covered in detail
- Long term nursing care
- The costs for parents associated with having a critically ill child in hospital.
- The costs associated with long term chronic conditions
People with long term chronic conditions can claim some of the costs associated with these conditions. Examples of this are food manufactured specifically for coeliacs or diabetics. Patients with kidney disease can claim the cost of travel to and from hospital for dialysis. The details of all these situations are not covered in this post. If you are dealing with a claim of this type for the first time, I would suggest that you read the Revenue leaflet which is linked to at the top of the post, ask a Doctor what you can claim, or ask any relevant patient associations for help.
The issue of nursing home expenses is more complex and is dealt with in this post
http://www.askaboutmoney.com/showthread.php?t=173961
Some expenses associated with having a critically ill child can be claimed for. See the Revenue leaflet IT6 for more information.
In general, if you have exceptional medical bills, you should investigate if tax relief can be claimed.
Dental treatment
Only certain specialist dental treatments are covered. Your dentist will have to fill out a Med2 form for the treatment. If you have a treatment which is covered, your dentist will know this and give you the Med2 form.
Dental treatment which is covered
- Crowns
- Veneers
- Tip Replacing
- Gold posts
- Gold inlays
- Root canal treatment
- Periodontal Treatment (gum disease)
- Orthodontic Treatment ( braces)
- Surgical removal of impacted wisdom teeth
- Bridgework
Treatment abroad is covered, as long as the doctor or dentist is licensed to practice in their home country.
I don’t know if foreign dentists are willing to fill in Med2 forms for Irish patients. Any first hand knowledge of this would be appreciated.
What is not covered
- Non Prescription medication
- Routine Dental treatment (check-ups, fillings, cleaning)
- Treatment that is covered by an insurance or compensation claim
If you are entitled to recoup money from your health insurance for medical costs, you cannot claim tax credits for this, as you did not pay the bill.
An example is a GP bill of 55euro.
Your health insurance pays you 30 euro per visit. You pay €25 (55 - 30)
You can claim tax relief on the €25 euro at 20% i.e. a tax credit of €5
The claim forms online or paper Med1 claim forms have a section for payments from other sources to facilitate making a claim in these circumstances
Also, if you pay more than 144 euro in the month for medication, in most cases, you can claim everything in excess of 144 back through the Drugs Repayment Scheme.
There is more information about the DPS here.
http://www.citizensinformation.ie/en/health/entitlement_to_health_services/drugs_payment_scheme.html
You can claim tax credit only for the €144 that you have paid.
How to claim
There are 3 ways to claim the tax relief on medical expenses.
If you use The Revenue PAYE Anytime online service to file your tax returns, there is a section for Medical expenses.
Use a Med1 form and submit it to your local Revenue office
If you are filing a Form 11, there is a section for Medical expenses.
How it works
Medical expenditure: €1,000
Tax credit at 20%: €200
If you claim via Med1, Revenue will send you a cheque for €200.
If you claim for it on your annual tax return, Form 11 via ROS, or PAYE Online it will appear as
Total Income Tax: €33,650
Personal Credit : €1,650
Medical expenses: €200
Payable: €31,800
Do not submit receipts but you must keep all relevant receipts for 6 years. The Revenue do spot checks . If you claim from a private health insurer ( VHI, Laya, Aviva, HSF), you need to submit original receipts and they do not send them back to you. However, the complete claim documentation from the health insurance company can be used instead of receipts for a tax claim.
You can only claim at the end of the tax year. If you have treatment in one year and you pay for it in another year, you can claim for these expenses in either year.
You must claim within 4 years. If you have expenses from 2009, you must claim for them by the end of 2013.
Expenses for this year, 2013, must be claimed by the end of 2017.
