The medical expenses and procedures that qualify for income tax relief

Farm Money Advice

Sat, 19 Jun, 2021 - 15:00

Kieran Coughlan

When it comes to medical expenses, you might be pleased to know that it is possible to make a claim against your private health insurance company, and separately to make a claim for income tax relief on any amount not reimbursed through insurance or another refund scheme.

Better still employees who receive free health insurance provided by their employer as a benefit in kind are also entitled to claim an income tax credit in respect of their insurance policy, with the credit worth €200 for each adult and €100 for each child covered by the policy.

In terms of the types of medical expenses that qualify, the following list is a guide of the types of eligible expenditure:

Doctor’s and consultant’s services;
Routine and maternity care for women during pregnancy;
Diagnostic procedures recommended by a practitioner;
Services in hospitals or treatment facilities such as clinics, where the services are either provided by a practitioner or diagnostic procedures recommended by a practitioner;
Transport by ambulance;
In-vitro fertilisation (IVF);
Consultants fees in relation to pregnancy;
Acupuncture (only where provided by a practitioner);
Non-routine dental care, such as crowns, veneers or orthodontic treatment but excluding fillings, extractions, cleaning and polishing
Treatment from a psychologist or psychotherapist (with restrictions);
Additional expenses of health care for a child that is suffering from a life-threatening illness or permanent disability or who needs speech and language therapy or educational psychological assessment;
Additional expenses for a kidney patient;
Nursing home and additional nursing care expenses.

You can also claim relief on the following if you are prescribed, referred or advised to, by a practitioner:

Drugs and medicines (e.g. prescriptions);
Orthoptic or similar treatment (treatment for squints and eye movement disorders);
Physiotherapy or similar treatment (such as a chiropractor, osteopath or bone setter);
Podiatry or chiropody costs;
Special diet expenses for coeliacs and diabetics;
Cost of purchasing, maintaining and repairing medical, surgical, dental or nursing appliances including hearing aids;

Some medical expenses are specifically excluded such as routine eye tests, glasses and contact lens, cosmetic surgery (unless for underlying medical reasons). Costs incurred outside of Ireland also qualify for relief so long as the expense is of a type that is allowable and the medical practitioner must be registered under that country's laws to practice medicine or dentistry there.

It is possible for a person to pay the medical expenses of others and claim the tax relief themselves. Obvious examples would include a parent paying for medical expenses of a child, but often children may pay for medical treatments of elderly parents not knowing that they are entitled to claim tax relief on same.

Along with income tax relief and possibly a private health insurance rebate certain medical equipment can also qualify for a VAT rebate.

The type of equipment that can qualify includes:

Necessary domestic aids (for example drinking and eating aids designed solely for persons with disabilities).
Walk-in baths designed for persons with disabilities.
Commode chairs and similar aids.
Lifting seats and specified chairs designed for persons with disabilities.
Hoists and lifters designed for invalids including stairlifts.
Communication aids designed for those unable to speak.

Claims for medical expense income tax relief and VAT refunds are now submitted online, with the paper version form Med1 and Med2 now consigned to history. Each individual should obtain professional advice specific to their own circumstances.