Tax Relief - Medical Expenses

Tax year 1999/2000 to 2007 inclusive.

How the relief works

For single people with no children, dependents, relatives* or other persons*: Calculate your total qualifying expenses From this amount, deduct €127/£100 Relief is given at your top rate of tax. For people with children, a spouse, dependents, relatives* or other persons*: You have a choice. A. If you are claiming expenses on behalf of more than one person, calculate your relief as follows:- Calculate the total qualifying expenses of all the people involved From this amount, deduct €254/£200 Relief is given at your top rate of tax. OR B. If you are claiming for one person only eg either you OR your spouse OR your child but not any combination, proceed as follows:- Calculate the total qualifying expenses involved From this amount, deduct €127/£100 Relief is given at your top rate of tax. Tip! Work out the more favourable scenario depending on your circumstances. * = The Finance Bill 2002 has extended the relief so that a person may claim for: a wider range of relatives other persons, whether they are relatives or not, where the person is aged 65+ OR permanently incapacitated. Top

Allowable Medical Expenses

Any element of your qualifying expenses which have not been refunded in full by the VHI, Health Boards etc are eligible for tax relief. The following expenses qualify:- From 6 April 2001, expenses for routine maternity care qualify for relief From 6 April 2001, where you incur medical expenses on behalf of a dependent relative, you may claim these expenses without reference to the dependent's level of income. In other words, you do not have to claim the dependent relative allowance (for which there is an income limit). Cost of Doctors'/consultants' visits Maintenance or treatment in hospital Maintenance in an approved nursing home Transport by Ambulance Kidney Patients expenses - up to a maximum amount depending on the circumstances Certain items of expenditure where a child is suffering from a serious life-threatening illness Doctors' Prescriptions, as follows:- Drugs and medicines Diagnostic procedures Orthoptic or similar treatment Hearing aid Orthopaedic bed/chair Wheelchair/Wheelchair lift - but not for alterations to building to facilitate a lift Glucometer machine (diabetics) Cost of employing a nurse in the case of a serious illness Physiotherapy or similar treatment Cost of a computer where it is necessary to alleviate communication problems of a severely handicapped person Cost of glutton free foods for coeliacs Top

Disallowed Medical Expenses

The following expenses do NOT qualify for tax relief:- Expenses for which you have been re-imbursed eg. refunds from VHI, Health Board or compensation claim Routine dental expenses covering extractions, scaling and filling of teeth, and the routine care of artificial teeth and dentures Routine ophthalmic treatment covering sight testing and the provision and maintenance of glasses and contact lenses From 6 April 2001, expenses for routine maternity care qualify for relief. For tax years prior to 6 April 2001, these expenses are not allowable . Non-routine expenses for maternity care are allowable prior to 6 April 2001 and remain allowable after that date. Top

How do I claim the relief?

You can claim the relief by completing your tax return AND by filling out the forms called "MED1" or "MED2" (dental expenses). You can wait until after the end of the relevant tax year to make your claim. Some more relevant points:- One issue that has arisen over the years is the fact that people simply are not claiming reliefs they are entitled to. Brian Cowen, in Budget 2007, has signalled that he intends wherever practical, that medical reliefs will be granted at source. Our understanding is that this will include nursing home expenses and unrelieved prescription medications. Relief can be claimed for expenses paid in the relevant tax year. However, you may elect to claim relief for expenses incurred and not necessarily paid in a particular tax year. If you adapt this approach, you must be consistent ie. all the amounts you claim must have been incurred in that tax year. In the case of drugs and medicines, certain amounts should be refunded by the Health Board. You can therefore claim tax relief on any unrefunded portion of such drugs and medicines. Do NOT send in your receipts with your claim to the tax office; however, make sure you KEEP YOUR RECEIPTS. *In the case of dependents staying in nursing homes, the relief may be given through the persons tax free allowances. This means relief is given during the tax year, rather than having to wait until the end of the tax year. To get the appropriate forms, contact your local tax office. Top