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Tax deductible costs – medical costs

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The number of deductible costs in the income tax return is limited. One of them are the medical costs, you can deduct them, but will you ever qualify?

In the event you have medical costs that are not being reimbursed by the insurance company, then you can deduct these medical costs in the income tax return. However, no all costs qualify. For instance, the own risk part of the costs that the insurance company does not reimburse, is not a cost for tax purposes. The costs made need to have been borne by you, the costs need to meet qualifications set by the tax office. And there is a threshold to be exceeded.

To start with the threshold, it is 1,65% of the taxable income of Box 1 and 3 together, and if you have a tax partner, over that income included. But if the income exceeds the amount of around EUR 40.000, the threshold is increased. Bottom line, if you are a good earner, you need to have been extremely sick and ill insured in order to qualify for any deduction for medical costs.

If you are under the EUR 40.000 taxable income and you still had to pay yourself for medical costs, you might needs some assistance in claiming the medical costs with the insurance company. A low income and high medical costs is something that does not go along, except when a loan is taken out.

There are deduction possibilities, you have to go into the small print of the legislation and you almost need to plan ahead becoming ill to benefit from the deductions.

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