Tax relief for health expenses is provided for under section 469 of the Taxes Consolidation Act 1997. The relief is granted at the highest rate of tax at which the taxpayer is chargeable for the year of the claim. Relief cannot be claimed for any expenditure that has been or will be reimbursed by a medical insurer or where a compensation payment is or will be made in respect of the expenditure.
The first €125 of any medical expenses incurred in any tax year is borne by the taxpayer. In the case of an individual claiming relief in respect of two or more persons, the taxpayer must bear the first €250. Claims for health expenses are made on form MED1. While it is not necessary to submit receipts with the form MED1, the receipts relating to the costs must be retained by the individual as he or she may be asked to produce them if the claim is chosen for detailed examination.
An individual may claim tax relief on certain medical expenses incurred by him or her on his or her own behalf, on behalf of a dependant, or on behalf of a relative. A dependant is any relative of the taxpayer or any other person who at any time during the year of claim is aged 65 years or over or who is permanently incapacitated by reason of mental or physical infirmity. A relative is defined as a husband, wife, ancestor, lineal descendant, brother or sister; mother or father of the taxpayer's spouse; brother or sister of the taxpayer's spouse; spouse of the taxpayer's son or daughter; or the taxpayer's child or any other child, who for the year of the claim, is in his or her custody and maintained at his or her expense and under 18 years of age, or, if over 18 years of age, is receiving full-time education.
Only health expenses incurred in the provision of "health care" qualify for tax relief. Section 469 of the Taxes Consolidation Act 1997 defines "health care" as meaning the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy as well as routine maternity care. Expenditure that qualifies for relief includes costs of doctors and consultants fees; diagnostic procedures carried out on the advice of a practitioner; drugs or medicines prescribed by a doctor or consultant; maintenance or treatment in a hospital or nursing home which is approved by the Minister for Health and Children or approved for the purposes of health expenses relief by the Minister for Finance after consultation with the Minister for Health and Children; supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner; physiotherapy or similar treatment prescribed by a practitioner; orthoptic or similar treatment prescribed by a practitioner; costs of speech and language therapy carried out by a speech and language therapist for a qualifying child, allowable from 6 April 2001 where a speech and language therapist means an individual approved by the Minister for Health and Children; transport by ambulance; costs of educational psychological assessments carried out by an educational psychologist for a qualifying child, allowable from 6 April 2001 where an educational psychologist means an individual who is registered with the Minister for Education and Science; certain items of expenditure in respect of a child suffering from a serious life threatening illness; kidney patients' expenses, up to a maximum amount depending on whether the patient uses hospital dialysis, home dialysis or CAPD; specialised dental treatment; routine maternity care, allowable from 6 April 2001; and in vitro fertilization.
Where qualifying health care is only available outside Ireland, the cost of reasonable travelling and accommodation expenses can also be claimed as a health expense. In such cases, the expenses of one person accompanying the patient may also be allowed where the condition of the patient requires it.
Plastic surgery or other medical works or procedures undertaken on purely cosmetic grounds do not qualify for tax relief; nor does the cost of routine dental or ophthalmic care.