Real Time Health Expenses

Penny87

Hi, I have submitted my tax returns for 2022 but have yet to hear back. So hopefully will get a small refund for that, but just have a question - how does the real time tax return work? I've had a medical bill of over 2400 euro this week so if I submit that bill /receipt how does that work? Am I right in saying I dont get a refund but would get more take home pay in my wages? Am I better off waiting a year and submitting that next Jan 2024? I have no idea how it works.

Thank you

gipi

In the real time set up, your tax credits are adjusted so your employer will deduct less tax for a particular week or month. It might be useful to get a refund quickly having spent a large amount instead of having to wait until next year.

I submitted 2022 health expenses claim on Tuesday last. I received my Statement of Liability notice showing the refund amount yesterday, and expect to have my refund early next week.

relax carry on

https://www.boards.ie/discussion/2058278516/real-time-health-expenses

You aren't better off one way or the other as overall the result is the exact same. By submitting the tax return you'll get a lump sum refund form Revenue assuming you are due one for the tax year the tax return relates to. However if you add the expenses in real time, you active tax year tax credit certificate gets updated and the benefit to you is less tax paid on your wages.

Assuming your health expenses would generate a 200 euro refund, that 200 would be paid as a lump sum to you by filing a return, whereas the real time credit means 200 euro less tax paid in the active tax year.

Penny87

Thanks for the replies, much appreciated! So let's pretend the refund was 400 in real time, would the money back be spread out over the whole year or just a couple of pay cheques?

ari101

Over the whole year so 1/12th per month for a claim made in Jan in time for Jan payroll, but if you make a claim in June for example, I expect you get 6/12ths in June and 1/12th thereafter assuming you are taxed on a cumulative basis.