How to claim your Medical Expenses

MEDICAL EXPENSES

A report compiled by the Joint Oireachtas Committee on Finance in 2011 concluded that up to €350m in tax relief could be going unclaimed each year – of which a staggering €50m alone is expected to be in respect of unclaimed medical expenses.

In order to address the issue of the significant amount of cash not being claimed by taxpayers, this article is a guide to claiming tax relief for health or medical expenses – one of the most likely expenses for which a taxpayer can claim relief for.

Who can claim?

An individual can claim tax relief for most unreimbursed medical expenses incurred for themselves and on the behalf others.

The claim must be in respect of unreimbursed medical expenses i.e. expenses not recovered from any other source e.g. under a medical insurance policy, excess on the drug payment scheme etc.

Examples of expenses qualifying for tax relief are:

•  Costs of doctors and consultants fees
• Drugs and medicines prescribed by a doctor
• Diagnostic procedures (X-rays, etc.) carried out
• Specialist dental work (e.g. crowns, bridgework etc.)
• Transport by ambulance
• Maintenance or treatment in a hospital
• Care in a nursing home
• Routine maternity care
• Expenses incurred on any medical, surgery or nursing appliance
• Physiotherapy or similar treatment
• Orthopaedic bed or chair
• Hearing Aids
• Wheelchair
• Educational Psychological Assessment on a qualifying child
• Speech and language therapy for a qualifying child
• Certain travelling and home expenses for kidney dialysis patients
• In vitro fertilisation treatment
• Cost of gluten-free products for coeliacs
• Orthoptic or similar treatment
• Dietary products for diabetics
• Treatment received abroad may also qualify

When can I make a claim?

A claim for medical expenses should be made at the end of the tax year in which the expenses were incurred. So a claim in respect of 2012 can be made in early 2013.

Are there any time limits regarding making a claim?

All tax relief claims must be made within 4 tax years of the expense being incurred. Therefore claims can still be made for 2009 and subsequent years.

At what rate is the relief given?

Since 2009, tax relief in respect of medical expenses is limited to the standard rate of tax. There is an exception in the case of certain nursing home expenses for which tax relief can still be obtained at the marginal rate.

How do I go about making a claim for medical expenses?

-         Completing a Form MED 1

Whilst you don’t send your medical receipts, it is imperative that you retain such expenses for 6 years as Revenue may investigate your claim.

-         Completing a Form MED 2 for specialised dental expenses.

-         It is also possible to submit a claim online via Revenue’s PAYE Anytime service.

Example of a Medical Expense Claim

In 2012, Sean incurred the following medical expenses:

-         5 visits to his GP @ €50 each

-         1 Consultation Fee @ €200

-         12 Monthly Prescriptions capped @ €132 re DPS

The total medical expenses incurred by Sean in 2012 amount to €2,034 (being €250 + €200 + €1,584). As none of these expenses are reimbursed, Sean can claim tax relief for €407 (€2,034 @ 20%) for 2012 by completing a Form MED 1 or by submitting claim online via Revenue’s PAYE Anytime service.

The above article is for guidance purposes only. If you want assistance in making a claim for Medical Expenses, you can contact Tommy at TW Business Solutions on 086-8191629 or alternatively email personal@tommywalsh.ie