Tax Tips

How Much Tax Can My Family Claim for Medical Expenses?

Medical expenses can certainly add up, and each year families incur unexpected medical bills that can be quite significant. There are still over 1 million people in Ireland without medical insurance, and for those who have it, not all medical expenses are fully covered. The good news is that you can claim back tax on a wide range of medical expenses.

Meet the O’Brien’s, a family of four from Dublin. Olivia, Robert, and their children Emily (16) and Jack (21). Olivia and Robert both work full-time employment in HR and Banking respectively, with a combined annual income of €110,000. They haven’t claimed any tax back in the last four years. Let’s have a look at their medical expenses and what tax back they are due.

Each family member visits the doctor on average once a year.
Olivia gets regular medication each month due to high blood pressure.
Emily required braces two years ago to adjust her teeth.
Jack got laser eye surgery last year after turning 21.
Robert’s parents required nursing home care for the last two years.

CONTENTS

Doctor Visits
Prescription Medications
Orthodontics
Laser Eye Surgery
Nursing Home Costs
Medical Costs Add Up
Value of the Family’s Medical Tax Rebate
Irish Tax Rebates Can Help You Claim Your Medical Expenses

Doctor Visits

The family each make a visit to a doctor about once a year, at a cost of €60 per visit. Additionally, Olivia visits her cardiologist once a year, at a cost of €120 a consultation. Over four years, the total cost of these visits comes to €1,440, which they claim back at a rate of 20%.

The total tax back amount for this medical expense is €288.

Prescription Medications

Olivia’s regular blood pressure medication exceeds the Drug Payment Scheme (DPS) cap each month, therefore her maximum spend each month on prescription medication in 2021 was €114.00. Throughout the year some other prescription medications were needed for other family members, but it does not increase the monthly medicine costs because they are already reaching the maximum threshold. The DPS threshold has decreased over the last number of years which has resulted in reduced costs to individuals and families. The O’Brien family’s total spend on prescription medication over four years was €5,832. They can claim back 20% of that or €1,166.

Orthodontics

Emily’s braces for her top and bottom teeth cost the family €5,000. While this was a significant cost for her parents, thankfully they can soften the blow of the dental expense and claim back 20% of the costs with a completed Med 2 form.

This resulted in a €1,000 tax refund to the O’Brien bank account.

Laser Eye Surgery

Jack’s eyesight has been poor for years. Last year when Jack reached the age of 21, he decided to get laser eye surgery. First, he had to undergo an assessment by an optometrist who then referred him for the surgery. He got the procedure done in both eyes and the total cost came to €4,400. Once again, they can claim back 20% of this cost.

Their total tax rebate for laser eye surgery is €880.

Nursing Home Costs

After years of struggling at home and needing full-time care, two years ago Robert’s parents were admitted to a private nursing home in South Dublin. Robert and his three sisters contributed equally towards the cost, but it still cost Olivia and Robert an eye-watering €10,000 a year. To their relief, they can claim back tax at the couple’s marginal tax rate of 40% on this cost.

Over the two years, they spent €20,000 on nursing home costs. Therefore, their total tax rebate for nursing home costs is €8,000.

Medical Costs Add Up

Let’s have a look at the O’Brien family’s total medical expenses over the last four years.

Doctor Visits: €1,440

Prescription Medicine: €5,832

Orthodontics: €5,000

Laser Eye Surgery: €4,400

Nursing Home Expenses: €20,000

TOTAL Medical Costs: €36,672

Value of the Family’s Medical Expenses Tax Rebate

Their total rebate for medical expenses alone comes to €11,334.

Now the O’Brien family can pay off the credit union loan and go on a long-overdue family holiday to Portugal.

Irish Tax Rebates Can Help You Claim Your Medical Expenses?

Irish Tax Rebates has been in the tax back business for over 20 years and has a dedicated medical tax department. They know exactly what you are entitled to and how to claim it. Apply today in 60 seconds and we’ll help you maximise your tax rebate!

New Customers: Apply here.

Existing Customers: Apply For Additional Rebate

Claim your tax back

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