Tax relief on drug payment scheme payments

[Apollo]

Hi all,

I'm making a return for 2008 as we speak for self employed income.

I'm also in the middle of claiming back some reliefs from 2007 when I was paye including rent relief, income tax overpaid & payments I made to the DPS which at the time was €85/month. I'm on medication for life.

What relief does anyone know will I get on the €85/month if any does anyone know?

It cost €90/month in 2008 which I intend to claim for now.

 

[DB74]

It will depend on your salary and what your top rate of tax is. If you have paid tax at the 20% rate only then you will get 20% relief. If you paid tax at 41% then you will get 41% relief, depending on how much salary was taxed at 41%.

Eg - if, say, your medical expenses came to €2,500 and you paid tax at 41% on €1,000 of your salary, then you would get tax relief at 41% on €1,000 of the medical expenses and 20% on the balance.

Medical expenses are one of the few reliefs that are still available at the high (41%) rate.

If you paid no tax then you will get no relief.

 

[gipimann]

Medical expenses are now only allowable at standard rate (for claims from 2009 onwards) - that was changed in the October budget last year.

 

[Apollo]

Thanks for the feedback folks.

I was a std rate tax payer for both 07 & 08 so std rate relief it is!


Cheers