Vol. 530 No. 2
76 Mr. N. Ahern asked the Minister for Finance if medical expenses incurred by a student in Belfast can be offset against tax liabilities by her parents in their tax returns; and if he will make a statement on the matter [3406/01]
Tax relief at the marginal rate may be claimed for certain non-reimbursed medical expenses incurred by a taxpayer, their spouse, dependent children or a dependent relative in respect of whom a taxpayer is entitled to a dependent relative tax allowance. As I announced in my 2001 Budget Statement, taxpayers who are paying medical expenses on behalf of a dependent relative will be entitled to claim medical expenses relief regardless of whether they are in receipt of the dependent relative allowance. Details will be provided in the forthcoming Finance Bill.
For the purposes of the relief dependent children can mean a child who is over the age of 18 years at the commencement of the year of assessment, who is receiving full-time instruction at any university, college, school or other educational establishment. Currently, the relief cannot be claimed if the child has income in excess of £2,100, although this restriction is being reviewed in the context of the forthcoming Finance Bill. Relief cannot be claimed for any expenditure which has been or will be reimbursed, that is, through medical insurance or where a compensation payment is made or will be made.
Most non-routine medical and dental expenses, including such items as the cost of doctors' visits, maintenance or treatment in a hospital, transport by ambulance, specialised dental treatment and certain items prescribed by a doctor, qualify for relief. However, routine dental, ophthalmic and maternity expenses do not qualify. As announced in the budget, the current restriction on routine maternity care is being removed.
Tax relief may also be claimed by a taxpayer on their own behalf or on behalf of a dependent child who is a student, in respect of qualifying medical expenses which have arisen outside the State. Where qualifying health care is only available outside Ireland, reasonable travelling and accommodation expenses can also be claimed. The first £100 per year of medical expenses incurred in the case of a claim for an individual, or £200 in the case of a claim for two or more persons, is excluded from the relief. Details of the relief are set out in Revenue leaflet IT6, Medical Expenses Relief, and may be accessed on the Revenue website www.Revenue.ie.
