When it comes to medical expenses, you may be pleased that you can get your private health insurance and claim an income tax reduction regardless of the amounts that are not reimbursed by an insurance or other reimbursement system.
Even better, employees who receive free health insurance from their employer as a benefit in kind are also entitled to an income tax credit of € 200 for each adult and € 100 for each insured child.
Regarding the qualifying types of medical expenses, the following list is a guide to the types of eligible expenses:
- Medical and advisory services;
- Routine and maternity care for women during pregnancy;
- Diagnostic procedures recommended by a doctor;
- Services in hospitals or treatment facilities such as clinics, where the services are either provided by a doctor or diagnostic procedures recommended by a doctor;
- Transport by ambulance;
- In vitro fertilization (IVF);
- Consultancy fees relating to pregnancy;
- Acupuncture (only if done by a doctor);
- Non-routine dental care such as crowns, veneers or orthodontic treatments, but excluding fillings, extractions, cleaning and polishing
- Treatment by a psychologist or psychotherapist (with restrictions);
- Expenditure on health care for a child suffering from a life-threatening illness or permanent disability, or who needs speech and language therapy or an educational psychological examination;
- Additional expenses for a kidney patient;
- Nursing home and additional care costs.
Also, if you are prescribed, referred, or counseled by a doctor, you can claim:
- Medication and medication (e.g. prescriptions);
- Orthoptic or similar treatment (treatment of strabismus and eye movement disorders);
- Physiotherapy or similar treatment (such as a chiropractor, osteopath, or bone setter);
- Podiatry or foot care costs;
- Special diet costs for celiac disease and diabetics
- Costs for the purchase, maintenance and repair of medical, surgical, dental or nursing equipment, including hearing aids;
Some medical expenses are specifically excluded, such as B. routine eye tests, glasses and contact lenses, cosmetic surgery (except for underlying medical reasons). Costs incurred outside of Ireland are also reimbursable provided the cost is acceptable and the doctor must be registered under the laws of that country to practice medicine or dentistry.
It is possible for one person to pay the medical expenses of others and take advantage of the tax relief themselves. Obvious examples would be one parent paying for a child’s medical expenses, but often children pay for medical care for older parents without knowing they are entitled to tax breaks.
In addition to income tax relief and, if applicable, a reduction from private health insurance, certain medical devices can also be exempt from sales tax.
The types of equipment that can be qualified include:
- Necessary household help (e.g. drinking and eating aids, which are only intended for people with disabilities).
- Walk-in bathrooms for people with disabilities.
- Chests of drawers and similar aids.
- Lift seats and special chairs for people with disabilities.
- Hoists and lifters for the sick, including stair lifts.
- Communication aids for people who cannot speak.
Income tax exemption requests for medical expenses and VAT refunds are now submitted online, with paper versions of Med1 and Med2 now a thing of the past. Each individual should seek expert advice tailored to their own circumstances.
- Tax Advisor Kieran Coughlan, Belgooly, Co. Cork
- (086) 8678296