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Tax refund for health expenses: why the delay?

  • 17-04-2019 12:03pm
    #1
    gaiscioch
    Registered Users, Registered Users 2 Posts: 1,534 ✭✭✭


    When I pay my health insurance premium each year the tax is refunded to me at that time, which is a great help. In the next month, however, I will have to pay €4200 of my net income (my marginal rate of tax is c. 60%) in health expenses. I am, however, entitled to a 20% refund (€840) on this cost (I checked). However, to claim that €840 back in tax for that health expense I will have to wait until the end of this tax year/from January 2020 on.

    As €840 is a lot of money to me, I'm feeling a bit miffed at the government hanging on to it for so long, especially when it has the ability to refund us immediately when it wants us to take out private health insurance. Is there no way I can get my money refunded quicker? As the savings I'm using to pay for it came from money I earned last year, could I not claim this expense back from last year?


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  • #2
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    gaiscioch wrote: »
    When I pay my health insurance premium each year the tax is refunded to me at that time, which is a great help. In the next month, however, I will have to pay €4200 of my net income (my marginal rate of tax is c. 60%) in health expenses. I am, however, entitled to a 20% refund (€840) on this cost (I checked). However, to claim that €840 back in tax for that health expense I will have to wait until the end of this tax year/from January 2020 on.

    As €840 is a lot of money to me, I'm feeling a bit miffed at the government hanging on to it for so long, especially when it has the ability to refund us immediately when it wants us to take out private health insurance. Is there no way I can get my money refunded quicker? As the savings I'm using to pay for it came from money I earned last year, could I not claim this expense back from last year?

    Health Insurance Premiums are tax relieved at source, meaning you pay less of a premium. That part is easy.

    Health Expenses are relieved by way of review at the end of the tax year. Your true picture with regard to taxes paid can only be looked at once the year is over.

    If you were to claim for health expenses in the current year (and you can on hardship grounds), you wouldn't get the full relief, only a percentage based on time expired in the current year.

    Furthermore, the tax year is ongoing. The amount of tax you are paying can change (or even stop). Your health expenses could increase. There are many factors in play as to why the end of the year is by far the preferred method


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