For these which might be fortunate sufficient to have personal medical insurance paid for (or partially paid for) by your employers, you would possibly have the ability to declare tax reduction for medical insurance premium paid by them!
Personal medical insurance premiums are topic to tax reduction. For individuals who purchase personal medical insurance individually, and never by way of a company scheme, tax reduction has already been utilized by your premium and you aren’t entitled to tax reduction.
Nonetheless, for the five hundred,000 individuals who have their personal medical insurance premiums both partially or totally paid in your employers, you’re seemingly entitled to reduction resulting from tax on Profit in Form (BIK).
How a lot tax reduction are you able to declare?
Every particular person can declare as much as 20% of the coverage quantity (if lower than €1,000) or 20% of €1,000 (if the coverage premium is over €1,000 yearly.
If you’re married and one of many couple’s employers pays for 2 folks, you’re entitled to say 20% in respect of each folks.
Aid may also be claimed for kids on a coverage, however this maxes out at €500 as a substitute of €1,000.
In case your employer (present or previous) has been paying in your medical insurance for the final 4 years, you’ll be able to return and declare reduction for these 4 years.
How do I do know if I qualify for tax reduction on personal medical insurance?
Earlier than I get into this, please search skilled recommendation earlier than submitting tax returns if you’re not comfy with making the choice your self. You shouldn’t declare tax credit that you’re not entitled to.
Firstly, verify your medical insurance paperwork to see what the ultimate premium is. It ought to look one thing just like the beneath:
Premium€800.00Levy€230.00Total Premium€1,030.00Group Low cost€103.00Loading€0.00Gross Premium€927.00Tax Aid€185.40Net Well being Insurance coverage Premium€741.60
You’ll discover it has a line referred to as tax reduction. In case your employer is paying for the premium, you’ve got seemingly not benefitted from the tax reduction.
Subsequent, you could verify your payslip. It would look one thing just like the beneath pattern payslip.
On the cost particulars (left hand aspect of the highest desk right here), there may be seemingly a line saying BIK Well being / BIK Medical or one thing to that impact. BIK is an quantity your employer is supplying you with on prime of your wage as a profit (comparable to medical insurance or bike to work scheme). Nonetheless, this quantity is topic to Earnings Tax, USC and PRSI.
If the month-to-month BIK quantity you’re paying equates to the annual gross premium earlier than tax reduction within the instance above (i.e. €927 annual, or €77.25 month-to-month BIK), you’re entitled to tax reduction.
The place do I declare the reduction?
When you’re making your tax return, head to the Well being part in tax credit & reliefs, and choose the “Medical Insurance coverage Aid”.
You then fill out the beneath containers with the gross quantity paid by employer, the variety of folks coated by that premium, and Income will mechanically calculate your reduction.
If the reduction is already claimed, you’ll be able to edit it on the backside of the tax return if the quantity is wrong.
See the Income.ie medical insurance coverage part for extra steering and particulars. You probably have any questions or considerations whether or not you’re entitled to make this declare, give Income a name. They’re very useful!
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