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How do you calculate tax refund on medical expenses?

  • 24-06-2009 9:52am
    #1
    fraggle79
    Registered Users, Registered Users 2 Posts: 84 ✭✭


    Folks,
    I have paid approx €4,500 on qualifying medical expenses last year and am wondering how do I calculate the amount due back. I have checked other posts and the revenue website but to no avail.
    Perhaps someone could show me an example?

    Thanks for your help.


Comments

  • #2
    Dan Chipowski
    Closed Accounts Posts: 1,072 ✭✭✭Dan Chipowski


    For 2008 relief is available at your highest rate of tax. So if you paid tax @ 41% that is the rated of relief you will get.

    Recent budget changes have changed this back to 20% for 2009 and future years.


  • #3
    misspiggy40
    Users Awaiting Email Confirmation Posts: 277 ✭✭misspiggy40


    Hi there.

    First find your P60 for last year. You cant get back any more than you paid out.

    Now imagine this, for 2008 you are entitled to relief at the higher rate of tax. That means that in the end, you will pay tax on your paye income less the medical expenses.

    So lets say you paid tax at the higher rate on €6000 you will get back €4,500 x 41%

    If you paid tax at the higher rate on €3,000 you will get €3000 x 41% plus €1500 x 20%

    If you paid no tax at the higher rate you will only get back €4,500 x 20%.

    To know what tax you paid at the higher rate take your annual standard rate cut off point (srcop) from your P60 income. Your SCROP should be on your payslip.

    Hope that helps....Always double check what you get back in case there are any errors and don't forget you can claim back expenses up to 4 years old against tax paid in the same year as the expense.

    Good luck.


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