Tax deductions related to medicine
printWhat is tax deduction on medical expenses
A tax deduction is an item or expense subtracted from gross income to reduce the amount of income subject to tax. The most common deductible expenses are purchase of real estate, education and medical treatment expenses. In Russia, if you receive your income from your employer (as opposed to some types of investments, self-employment, etc), usually your employer withholds the income tax from your salary, in which case you receive your after tax income. If you are a tax resident and you are eligible for any of the tax deductions, you may return some of the income tax paid by applying for tax refund. One type of income tax deduction is a deduction of medical expenses, which includes expenses on medical services, certain type of drugs, etc. Tax deduction of medical expenses is one of the so-called “social” tax deductions. The deduction can be made for expenses on own medical treatment as well as for the medical treatment of the spouse, parents and children under 18 years old. The deduction is applicable if your spouse, parents and children under 18 years old received the treatment and you paid for it. The deduction of medical expenses can be made each year, unlimited number of times.
Deduction amount and limits
The total amount of some social deductions may not exceed 120 000 rubles per year. That is, if you make several types of social deductions (for example, some medical and education), the total amount of all these deductions may not exceed 120 000 rubles per year. If you make only deduction of medical expenses and do not have any other types of social deductions, the maximum amount for deduction of medical expenses is 120 000 rubles per year. There is an exception on the deduction limits for the special list of expensive types of medical treatment, for which the unlimited deduction can be made.
Conditions necessary to deduct expenses on medical treatment
There is a government approved list of medical services, for which the deduction of medical expenses is applicable. The drugs, for which the deduction of medical expenses is applicable, are indicated in a separate list (also determined by the government). There is also a special list of expensive types of medical treatment, for which the unlimited deduction can be made. In order to be eligible for the medical deduction, the medical treatment must be performed by a licensed medical facility in Russia. In order to claim the deduction, it is necessary to submit the completed 3-NDFL form together with the documentation, which proves you eligibility for the deduction, to the tax inspection.
How to get deductions with Nalogia
In the section of our website "Useful" you can find the list of documents you need to receive tax deductions, application forms, forms of the tax returns, instructions and software to prepare all necessary documentation. Besides, you can order preparation of all necessary documentation to Nalogia's consultants. In case you order tax preparation, our consultants will carefully, fast and conveniently prepare everything for you. You will get the documents not leaving you apartment of office.
Valid as of 18.05.2012
