You may be able to claim Tax relief on medical and health expenses, including prescription costs. €150 per month on medication = tax credit of €360 per year.
Tax relief on medical and health expenses is given at the standard rate of 20%. This means that you can apply for a tax credit equal to 20% of the cost of your prescription medication. If you have paid tax in that year you may be eligible for a refund.
If you are a PAYE tax payer you can claim tax relief online using myAccount.
If you are a self-assessed taxpayer, use Revenue Online Service (ROS) and complete the health expenses section on your annual Income Tax Return (Form 11).
You must keep copies of all your receipts, You can use Revenue’s myAccount service to store your receipt details online using the receipt tracker service. If you use this service you can make a real time credit claim.
You can make a claim for expenses for the last 4 years. You must keep receipts in case of audit for 6 years after you make the application. Taxpayers who choose to upload and save images of their receipts to Revenue receipt tracker are not required to keep the original paper receipts, provided the uploaded versions are clear, readable and complete.
You can also claim medical expenses relief offline by completing a paper Form 12 and returning it to your Revenue office. If you are not able to use Revenue’s online services you can use Form 12S (a simplified version for routine tax returns).
You can also request to have a Form 12 or Form 12S sent to you by calling Revenue on (01) 738 3675.
Example
Person A works full time and paid €2679 in PAYE tax last year – they also spent €150 per month on medication for 12 months, they receive €360 as a tax refund.
Person B works part time and paid €234 in PAYE tax last year – they also spent €150 per month on medication for 12 months, they will receive €234 tax refund as this is all of the tax they have paid on their income.
Tax credits reduce the amount of tax you pay on your income.