Tax relief when employer pays medical insurance

ashes2014

Hi everyone

This might be of benefit to people whose employer pays health insurance on their behalf.

My husbands employer pays our VHI of approximately €1500 per adult and €550 per child. Total is roughly €4,100 for 2 adults and 2 children.

Revenues maximum allowance per adult is €1000 @ 20% per adult and €500 @20% per child. If your employer makes payment equal or greater than those limits for you, then you should definitely keep reading.

We are entitled to tax credits of €600 but Revenue only gives us medical insurance relief credits of €400 altogether, for 2 adults & 2 children which is €200 short of what we should be getting.

Revenue should be giving us €600 worth of tax credits.

Adult 1 should be €1000 @ 20% = €200
Adult 2 should be €1000 @ 20% = €200
Child 1 should be €500 @ 20% = €100
Child 2 should be €500 @ 20% = €100

Total = €600 but we only receive €400 tax credits.

I have to fill in a Form 12 to claim the €200 that we are due. I don't know why revenue only allocate us the €400 instead of €600. I have asked them to correct this but it was never amended. Now i just submit the Form 12 each year.

I may not be the only person that is not being allocated the correct amount so my advice is to check your tax credit certificate and make sure that you are claiming all of the medical insurance relief that you are entitled to.

Ps. you can claim back as far as 2015 too (it goes back 4 years).

cython

This is standard, per https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/medical-insurance-premiums/index.aspx

Tax relief at source (i.e. health insurance tax credit) is only available when the employee pays the premium out of their salary, so it's actually a little puzzling that you get any credits assigned, as my reading of that link, and indeed having been in receipt of a similar benefit, is that you should get nothing up front, and everything should be through Form 12.

ashes2014

cython wrote: »

This is standard, per https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/medical-insurance-premiums/index.aspx

Tax relief at source (i.e. health insurance tax credit) is only available when the employee pays the premium out of their salary, so it's actually a little puzzling that you get any credits assigned, as my reading of that link, and indeed having been in receipt of a similar benefit, is that you should get nothing up front, and everything should be through Form 12.

It may be standard but its not correct in my case and may not be for others too. No system is perfect after all

Im sorry your puzzled-I didn't mean to confuse you

Always worth checking out just in case

cython

ashes2014 wrote: »

It may be standard but its not correct in my case and may not be for others too. No system is perfect after all

Im sorry your puzzled-I didn't mean to confuse you

Always worth checking out just in case

The only thing that's not correct here is that you (as a household if not you personally) are receiving any tax credits - you 100% shouldn't be if the employer is paying all of the premiums. The only reason you'd be entitled to partial TRS in this manner is if the employee pays a portion of the premium. That's the puzzling part.

The Diddakoi

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/medical-insurance-premiums/index.aspx

If you pay your Med Insurance yourself you have already received Tax Relief at Source, so nothing to claim from Revenue, no extra credits.

If your employer pays part or all of your premium, claim on Form 12.

Up to 1000 per adult, and up to 500 per child. Can be applied during the year, but will be updated to correct amount following submission of Form 12.

ashes2014

cython wrote: »

The only thing that's not correct here is that you (as a household if not you personally) are receiving any tax credits - you 100% shouldn't be if the employer is paying all of the premiums. The only reason you'd be entitled to partial TRS in this manner is if the employee pays a portion of the premium. That's the puzzling part.

Well we 100% are receivng them but we are not receiving all of them and it may be incorrect for other people too.

ashes2014

The Diddakoi wrote: »

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/medical-insurance-premiums/index.aspx

If you pay your Med Insurance yourself you have already received Tax Relief at Source, so nothing to claim from Revenue, no extra credits.

If your employer pays part or all of your premium, claim on Form 12.

Up to 1000 per adult, and up to 500 per child. Can be applied during the year, but will be updated to correct amount following submission of Form 12.

Some people may think that the amount being applied is the total amount they are due.

Its always worth checking how much health insurance was paid on your behalf and if the correct tax credits were applied.:)

Taxedalot

Have the same issue every year - we're a large family: 2 adults and 5 kids, so the amount my employer pays comfortably exceeds the €404 credit I'm granted every year. I used to have to sort this by old school phone calls and correspondence, but this year (for 2018 tax year) I was able to sort it via Revenue online, which suggests it's becoming a more regular type of query for revenue.

Don't forget, you can go back 5 years (or is it 4?). The refund was quite significant the first time I claimed it.

The Diddakoi

Taxedalot wrote: »

Don't forget, you can go back 5 years (or is it 4?). The refund was quite significant the first time I claimed it.

You can go back 4 years, so can review 2015, 2016, 2017 and 2018.

Complete Form 12 online through My Account, “review your tax 2015 to 2018”.

No need to submit the Med insurance certificate, though you can use the receipts tracker if you wish. Just keep a copy for the next 6 years in case it is requested.

relax carry on

Just a word of warning with this. Quite a few people got caught lately mixing up income continuance with medical insurance relief. Just be sure you are claiming under medical insurance relief not income continuance.

djdunny

The Diddakoi wrote: »

Complete Form 12 online through My Account, “review your tax 2015 to 2018”.

No need to submit the Med insurance certificate, though you can use the receipts tracker if you wish. Just keep a copy for the next 6 years in case it is requested.

This may be a silly question but I had already submitted my Form 12 (which I now need to amend to claim the extra relief for my wife).

I get as far as section 5 of amending but I am confused as to what section I need to edit.

Is it the "Medical Insurance Relief" at the bottom of the page under "Dunnys Tax Credits"?

Hey guys,

My employer pays my health insurance.

Found out about this credit and went applying for it last night for the years 2016 to 2019.

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/medical-insurance-premiums/index.aspx

Following the steps above, I logged into the portal and followed the steps outlined.

Review tax link in PAYE services/income tax returns/tax credit and reliefs/health and medical insurance relief.

I updated the amount paid by my employer/number of adults children covered by the policy (just mise). It didn't ask for my VHI details or to upload any documents.

I did this for the 4 years and submitted. I got four separate mails from the revenue immediately with reference numbers.

Got another mail at 7 am saying I had correspondence in my portal. Logged in and it was statement of liabilities from 2016 to 2018.

Didn't match to the reference numbers and no info about any refund.

Did I miss a step or are the statement of liabilities something separate nd I will hear more about by cliam in the coming weeks/months?

Synode

Was there figures on the statement of liabities?

Synode

Synode wrote: »

Was there figures on the statement of liabities?

Cheers for the reply mate. Didn't see anything about a refund on the statement of liabilities but see something in panel 3 about a tax credit medical insurance relief of 200.

I know we used to get P21 balancing statements instead of statement of liabilities until 2019 I think.

I checked with VHI online portal before applying and they said its not deducted at source and I am definitely allowed to claim for this credit.

relax carry on

WasBornToBoogie wrote: »

Cheers for the reply mate. Didn't see anything about a refund on the statement of liabilities but see something in panel 3 about a tax credit medical insurance relief of 200.

I know we used to get P21 balancing statements instead of statement of liabilities until 2019 I think.

I checked with VHI online portal before applying and they said its not deducted at source and I am definitely allowed to claim for this credit.

The 200 euro is the tax relief on the premium for one person. It's 20% of 1000 euro. Since it's on the statement, you've been granted the tax relief. If no refund is due, you probably had that tax relief all along.

Synode

WasBornToBoogie wrote: »

Cheers for the reply mate. Didn't see anything about a refund on the statement of liabilities but see something in panel 3 about a tax credit medical insurance relief of 200.

I know we used to get P21 balancing statements instead of statement of liabilities until 2019 I think.

I checked with VHI online portal before applying and they said its not deducted at source and I am definitely allowed to claim for this credit.

Health insurers give a reduced payment which factors in the TRS. If the company pays the premium they're obliged to return the TRS on their CT1 (they pay it to the Govt). And you're allowed claim it on your Form 11 or balancing statement

Jocular

I have a quick question on this. I have a membership certificate that I was going to use to claim back this tax for 2019 as my employer pays my health insurance. There is a gross subscription and a net subscription on this with exactly €200 difference between them. What does the gross and net subscriptions mean?

wonski

Jocular wrote: »

I have a quick question on this. I have a membership certificate that I was going to use to claim back this tax for 2019 as my employer pays my health insurance. There is a gross subscription and a net subscription on this with exactly €200 difference between them. What does the gross and net subscriptions mean?

Gross premium is gross less discount(eg company plan) + loadings (depending on your age when signing up) minus tax relief.

If your insurance is listed on your payslip as BIK you can still claim your 200 tax credit at the end of the year.

I only received mine from 1/10 to the end of January as I joined the scheme on 1st October and my gross was 705 and net 618.

The total cost of policy that is deducted from your pay is what matters to you. Most policies will go over 200 euro tax credit anyway so that's all you will get back regardless of the premium.

You just claim in what you actually paid based on your payslip.

niallo32

I'm in the same boat. Employer pays VHI for myself, wife and two kids. BIK listed on payslip at €465 per month.

Can I claim this on Form 11 for 2019 and if so, how much and where do I enter?

Thanks..

Jocular

niallo32 wrote: »

I'm in the same boat. Employer pays VHI for myself, wife and two kids. BIK listed on payslip at €465 per month.

Can I claim this on Form 11 for 2019 and if so, how much and where do I enter?

Thanks..

You get a membership certificate it will have the amount to put in (gross amount that the company pays). The tax credit is calculated based on 20% of what the company pays. The max you will get is €200 per adult. You put it into the tax credit section of the form 11.

niallo32

Jocular wrote: »

You get a membership certificate it will have the amount to put in (gross amount that the company pays). The tax credit is calculated based on 20% of what the company pays. The max you will get is €200 per adult. You put it into the tax credit section of the form 11.

Thanks, it's 5.5k approx in total. So I can claim €200 per adult and €100 per child?

Do I put these four line items in under 'Personal tax credits/Medical insurance relief'?

niallo32

Can anyone confirm where these values go?

Form11/Personal Tax credit/Medical insurance relief
->

I've put in 4 x lines for two adults and two kids and in the box 'Amount of the Gross premium attributable to this individual' I've put in 200 x 2 for adults and 100 x 2 for the kids.

Is that correct?

Thanks..

wonski

niallo32 wrote: »

Can anyone confirm where these values go?

Form11/Personal Tax credit/Medical insurance relief
->

I've put in 4 x lines for two adults and two kids and in the box 'Amount of the Gross premium attributable to this individual' I've put in 200 x 2 for adults and 100 x 2 for the kids.

Is that correct?

Thanks..

No. You should put gross premium paid for each person on the policy.

The amounts you listed are tax credits amounts you will receive

niallo32

wonski wrote: »

No. You should put gross premium paid for each person on the policy.

The amounts you listed are tax credits amounts you will receive

Thanks a mil