Health Expenses on Income Tax Return

bugsyb4

Hi all,

We have decided to file our income tax return for first time after previously getting an accountant to do it for last few years.

I have one question which is probably a silly one but just want to make sure what I am entering is correct.

So for example on Panel 5 in 2018 for health expenses our accountant entered an amount of €998. Does this amount equate to 20% of total expenses which we are allowed claim tax relief on? Or do we put in full amount and Revenue get 20% themselves. We had consultant fees in 2018 so our total health expenses would be well above 3k.

I feel like the figure entered is correct but in 2017 they entered an amount of €2,484 so would that mean they took our total health expenses as €12,420? We didn't have anywhere close to that in 2017 so assuming accountant comletely overstated amount that year probably by accident.

Any help appreciated on this.

Stratvs

The amount you enter is the amount of the actual expense, not the tax credit value. So if you have allowable unreimbursed expenses of €1,000 you enter that. Revenue will do the conversion to the tax credit amount of €200.

Look at the 2017 statement from Revenue if your accountant entered €2,484 on the tax return then the tax credit due would be €496.80.
If that's what you got then 2018 is correct. For 2018 if they entered €998 on the tax return then the tax credit would be €199.60. If you had over €3K in allowable expenses in 2018 then there may be a revision due there as the tax credit on that would be €600. You need to compare the receipts to the amount on the tax return and then to the Revenue statement to see.

Bear in mind I say allowable expenses, you may have had €3,000 in health expenses but some might not have been allowable, e.g. routine dental.

bugsyb4

Stratvs wrote: »

The amount you enter is the amount of the actual expense, not the tax credit value. So if you have allowable unreimbursed expenses of €1,000 you enter that. Revenue will do the conversion to the tax credit amount of €200.

Look at the 2017 statement from Revenue if your accountant entered €2,484 on the tax return then the tax credit due would be €496.80.
If that's what you got then 2018 is correct. For 2018 if they entered €998 on the tax return then the tax credit would be €199.60. If you had over €3K in allowable expenses in 2018 then there may be a revision due there as the tax credit on that would be €600. You need to compare the receipts to the amount on the tax return and then to the Revenue statement to see.

Bear in mind I say allowable expenses, you may have had €3,000 in health expenses but some might not have been allowable, e.g. routine dental.

Ah right that is not what I was thinking at all thanks for that. I should probably say that what I am looking at is what Revenue have sent out to us the Self Assessment - Chapter 4 of Part 41A TCA 1997 document, I am not actually in tax return so possibly what is on tax return is different to what I am looking at and what I am looking at might be the 20%.

Yeah I seen dental is not allowed that 3k was for a consultant for pregnancy so pretty certain all of that is allowed.

Stratvs

bugsyb4 wrote: »

I should probably say that what I am looking at is what Revenue have sent out to us the Self Assessment - Chapter 4 of Part 41A TCA 1997 document, I am not actually in tax return so possibly what is on tax return is different to what I am looking at and what I am looking at might be the 20%.

Yes, the amount on the Revenue asst is the tax credit amount. Your accountant will have entered the original amount on the tax return as per my earlier post.

The maternity care is allowable.
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/what-are-qualifying-expenses.aspx

Stratvs

Stratvs wrote: »

The maternity care is allowable.
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/what-are-qualifying-expenses.aspx

On a historical note here up to 2001 only "non-routine" health expenses were allowable so routine maternity care was not claimable up to then. It was treated for tax relief like routine dental or optical.

bugsyb4

Thanks for all that!