tax relief on medical expenses

[cologneboy]

Hello there and happy x-mas to everybody!

I'm currently putting the above claim for the last four years together and have the following question:

When claiming for the tax year 2005 in which my wife incurred the majority of medical expenses which tax rate will therevenue apply for her individual claim for that year? For the tax year 2005 she was taxed at the higher rate, since 2007 on the lower.


Thanks,

 

[ClubMan]

How are you taxed as a married couple? Joint/aggregated, separate or as two (effectively single) individuals? When did you marry?

 

[cologneboy]

we got married in 2003 and are taxed jointly. I was just wandering in relation to medical expenses, could my wife claim hers individually for 2005 as she incurredmost of them during that year and a joint claim would disadvantage us as we would have to deduct € 250,- opposed to €125,- from our expenses. My understanding is that I/we could chose either way.
My question aimed to clarify which tax rate the revenue would apply to a claim from 2005, the current tax rate or the one paid during the relevant year?

Thanks,

cologneboy

 

[ClubMan]

Do you mean two individual claims - one for each of you rather than a single joint claim? Not sure if you can do that but never really thought about it before. On the other hand if you are just claiming for her expenses and not any others of your own then you can make an individual claim in her name.

For your info the €125/€250 "excesses" are gone from 2007.

 

[PetPal]

The tax rate used would be the rate that your wife paid in the year in question as far as I know. It makes sense. The idea is to give the taxpayer back the tax that he/she paid on earnings that then later went on medical expenses. Hope that answers your question.

 

[cologneboy]

Thanks for your answers. Decided to go with the individual claim for 2005 for my wife. Hope the actual tax rate she paid that year will be applied for revenues calculations.

Will keep you all updated!

Happy new year,


cologneboy

 

[Guest127]

I suspect they will issue a p21 for 2005 and the tax refund will show on this. Make sure you have your union subs, bin charges etc claimed for and the one p21 will cover the lot.