This is in reply to daisyduke’s questions. Some of the info might be a bit old so you are best off going to http://www.revenue.ie.
Med 1 is the form used to claim back income tax paid on qualifying medical expenses. Repayment is made at the taxpayer’s marginal rate, up to 42 per cent, making it a valuable tax break.
For example, a family of two adults and two children could easily claim back up to €735 via the Med 1 in just one year.
Single people could expect to claim up to half this amount, depending on their medical bills.
It is not unusual for a family of four to spend €2,000 a year on qualifying medical expenses. Mothers may take sick babies and young children to the doctor several times a month for vaccinations, check-ups, antibiotics and so on. If specialists are required, that can quickly push up the bill, particularly when the husband’s and wife’s medical expenses are included.
Families are entitled to claim back all amounts above €250 (singles €125) spent on qualifying medical expenses.
Thousands of people are missing out on this valuable tax break, which can be claimed retrospectively for up to four years. Tax specialists say it is one of the best money savers, but least-claimed tax breaks available.
What expenses can be claimed under the Med 1?
Qualifying expenses include:
Prescription medicines, such as the contraceptive pill, anti-depressants, antibiotics and vaccinations
Physiotherapists, acupuncturists and psychiatrists consulted on medical advice
Corrective laser surgery for short-sightedness
In-vitro fertilisation treatment
Certain travelling expenses, for example when attending a specialist with a sick child
Food and drinks required by coeliacs or those on specialised diets on the advice of a doctor
Routine health care in pregnancy
Speech and language therapy for a dependent child ( this I don’t understand cos SLT is provided free of charge publicly)
Educational psychological assessment for a dependent child
Nursing home care
For example, if your spouse, mother or father or a dependent suffered a stroke and was admitted to a qualifying nursing home to which you were contributing, say, €1,000 a month, you can use the Med 1 form to reclaim €420 a month, or €5,040 a year. The dependent’s income (if any) is taken into account when claiming relief.
Check on Revenue’s website http://www.revenue.ie under Med 1 for further details.
Expenses that do not qualify
Sight testing and advice about the use, supply or repair of spectacles.
Routine dental treatment, including fillings, extractions, cleaning/polishing, dentures, repair of artificial teeth and so on. Tips Don’t forget to enclose your P60 with your Med 1, otherwise Revenue will return your application form and delay your payment.
Many taxpayers think that, once a medical expense has been predominantly reimbursed by a health insurer or health board, no further allowance can be claimed in excess of their annual Revenue allowance of €125 per person or €250 per family. This is not the case.
Medical insurance experts say a tiny percentage of VHI and Bupa customers claim for out-patient medical costs each year.
Timothy is hospitalised and is covered by plan A with the VHI, which entitles him to a semi-private room in a public hospital, but does not cover him for a private room in the Blackrock Clinic where he chooses to stay.
In this case, the total cost of his treatment and stay is €3,000.The VHI might agree to pay €2,400 of the total cost.
Timothy can claim for any amount above €125 not covered by another source.
He can therefore claim for €3,000 minus €2,400 minus €125 = €475 at his marginal rate of tax 42 per cent, which saves him €199.50.
You can submit your claim any time. Also you can claim qualifying medical expenses on your Med 1 and Med 2 up to four years after you incurred the expense, provided you have supporting receipts.
You do not need to send in the receipts but must keep them available in case Revenue wishes to check them.
You should reclaim any outstanding medical costs from the VHI or Bupa before you seek a rebate from the Revenue, as you might be able to reclaim the full amount, as opposed to just 42 per cent of the bill.
Deduct any payments made towards your medical costs, for example Bupa, VHI or Vivas refunds. If you are claiming for children who have an income in their own right, this should be stated on the Med 1 form.
The Med 2 form, which deals with non-routine dental care, must be completed by a dental practitioner.
Types of dental treatment for which tax relief is allowable are:
Crowns, veneers and tip-replacing (all part of the crown family)
Surgical extraction of wisdom teeth
Periodontal and orthodontic treatment
Bridgework and root canal treatment
You can also claim tax relief for the cost of nursing home care, which must be approved by your local health board and must be on the advice of an approved practitioner.
If in doubt, ring an accountant or tax consultant who may be able to unearth valuable, unclaimed reliefs for you.
You can also call the Revenue Commissioners information office on 01-878 0000, or call your local tax office.”
I’ve edited it slightly to make it more relevant. go to http://www.revenue.ie, it’s really easy to do online., YOu just need your PPSN and your PAYE PIN. If you don’t have your PAYE PIN then apply online for it. Y0u need to keep receipts though! My first year claiming I didnt keep receipts, my lovely GP’s secretary issued me new ones for the dates I had visited the GP in 2007. So I didnt get to claim for cost of meds ( and Im asthmatic too Daisyduke) but at least I got something back.
It’s money we are throwing away by not claiming back!