Tax refund on medical expenses.

Western Pomise

Hi all,

just wondering what % of medical expenses incurred in a year are tax refundable.My brother has asked me to check it out for him,he is in permanent employment,salary circa 40 k a year,unmarried.He has around 100 euro monthly expenses on medications.

thanks for any replies.

Geuze

All medical expenses, there is no limit.

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section8

Western Pomise

Geuze wrote: »

All medical expenses, there is no limit.

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section8

thanks but what I meant was what % of each euro can he hope to claim back on....eg is it 20 euro back out of every 100 spent.

Geuze

Yes, 20%, as in the main income tax rate.

Tax relief is available at the standard income tax rate, not at the top income tax rate.

Western Pomise

Geuze wrote: »

Yes, 20%, as in the main income tax rate.

Tax relief is available at the standard income tax rate, not at the top income tax rate.

Thanks for info....typically does it take revenue long to issue refunds from when relevant info needed is sent in?

gerrybbadd

It can take up to ten days after the claim is processed.

If the claim was sent in online, generally the claim is dealt with very quickly. For instance, i made a claim yesterday, and it was done overnight.

However, if a paper based form is sent in, then it enters the postal backlog, cos everyone is sending in claims at this time of year. So say a 6 week backlog + up to 10 days

Turnipman

Western Pomise wrote: »

Thanks for info....typically does it take revenue long to issue refunds from when relevant info needed is sent in?

If he registers for Revenue's myAccount, then the refund payment could be lodged to his bank account a mere 48 hours after he has submitted his claim. That's right - it can take as little as 2 working days IF the claim is submitted online.

Just Retired

Hi There
There is a lot of information on the Revenue Website regarding Medical Expenses.Briefly it is 20% (Standard Rate) of all expenditure that is allowed,so €100.00c per month amounts to €1,200.00c per annum. This gives a Tax credit of €240.00c (20% of €1,200.00)off your tax that was deducted. So if your P60
showed a Tax deduction of €2,240.00c before claiming Health expenses, it will after receiving your P21 SHOW only €2,000.00c of tax due with the balance being either sent to your Bank Account or the Cheque in the post method.
It is worth noting that if you were convalescing in a Registered Nursing home, and your Marginal rate of tax is 40% your refund would be 40% of the cost.after any Insurance re-imbursement to it's cost. E.G. Nursing home cost €1,500.00c Insurance Re-Imbursement €500.00c you can only claim on €1,000.00c (€1,500.00c-€500.00c).Please note if your marginal rate of Tax i.e. 40% can only be allowed For Nursing home expenses.
You must retain all receipts incurred for medical expenses, as Revenue May request an audit at some time in the future.

helimachoptor

Are refunds still done by bank transfer or is it done via tax credit these days?

Just Retired

Helimachoptor
The usual practice if a refund of tax is due is to refund it by 1)BIC IBAN/SEPA Transfer, quickest possible method. 2) By a cheque in the post,(Longer wait time)
If the refund was less than a certain Amount, not sure what value,though say €10.00c
your Tax Credit and Standard rate cut-off point would be adjusted to reflect this.
It is probably not used for amounts greater than the sum listed above. In that case a refund is by one of the 2 methods listed above. I suppose you could contact Revenue and find out if they will adjust the Cert.with a greater amount,of course you get your refund if this was done, but only over the course of the year that the adjusted cert is valid for.
At the other end of the scale if you owed Tax,then your Tax Credt Cert & SRCOP is adjusted to recover the Tax owed. For PAYE deductions in Employment/Pension this is the case, hence tax owed is recovered over the period of one year, so you have a higher Tax take to reflect this.

Hayden Pennyfeather

I have submitted my expenses to date for 2016 on MyAccount on the Revenue website. I assume these won't be processed until Jan 2017?! Is this the case?

relax carry on

bigkocman wrote: »

I have submitted my expenses to date for 2016 on MyAccount on the Revenue website. I assume these won't be processed until Jan 2017?! Is this the case?

Are you still in active employment? If you are the expenses for 2016 can't be processed as it's still an active tax year and needs pay and tax details input for 2016.

Hayden Pennyfeather

relax carry on wrote: »

Are you still in active employment? If you are the expenses for 2016 can't be processed as it's still an active tax year and needs pay and tax details input for 2016.

Yes I am. That's what I thought, that it would be 2017 before it's processed. My question is if I have everything submitted before the year end, how far into the following year does it take to be processed? Is it a few days, weeks or months?

CIARAN_BOYLE

bigkocman wrote: »

Yes I am. That's what I thought, that it would be 2017 before it's processed. My question is if I have everything submitted before the year end, how far into the following year does it take to be processed? Is it a few days, weeks or months?

Depends on when your employer files his employment tax return. He has until 23 February to do so.

Hayden Pennyfeather

CIARAN_BOYLE wrote: »

Depends on when your employer files his employment tax return. He has until 23 February to do so.

OK i had no clue something like that would have an impact. Thanks for that.

CIARAN_BOYLE

bigkocman wrote: »

OK i had no clue something like that would have an impact. Thanks for that.

generally once you get your p60 the p35 is filed and you can get a refund. remember you only get a refund of paye paid.

dudara

You need your P60 for a particular year in order to claim. But once you claim online, the process is very fast.

In my case, I won't get my 2016 P60 until end of Jan. Only then will I be able to claim for 2016 medical expenses.

gerogerigegege

hi,

is there any easier way of getting refunded than using ros.ie.

the process is a nitemare

relax carry on

https://www.boards.ie/discussion/comment/119373292#Comment_119373292

You can pay a tax refund company like taxback to do it but it literally takes 5 minutes via your Revenue MyAccount. Links below explains. There is even a video on filing a return. What exactly are you stuck on?

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/how-do-you-claim-health-expenses.aspx

https://www.revenue.ie/en/jobs-and-pensions/end-of-year-process/income-tax-return.aspx

gerogerigegege

https://www.boards.ie/discussion/comment/119373334#Comment_119373334

im quite lazy to be honest😌

Can they be posted in?

You mention ROS, are you filing a Form11, or using MyAccount to do a Form12/PAYE return? The latter is more straightforward.

https://www.boards.ie/discussion/comment/119375798#Comment_119375798

You don't have to provide them to apply for tax relief, only if requested to provide a copy. However you can upload them to Revenue if you want to store them in their system.