How the deduction of medical expenses works
Medical and healthcare expenses represent one of those items that offer savers the opportunity to deduct the amount of costs incurred. What does all this mean? Each year, each taxpayer is called to file his own tax return. In the compilation of this document, specific sections are provided within which the list of expenses incurred during the previous year can be entered.
For the year 2020, the Irpef deduction for medical and health expenses corresponds to 19% and applies to the amount exceeding the franchise of 129.11 euros. This means that if a taxpayer incurred a drug expense of 300 euros during 2019, then the application of the deduction will follow this calculation:
300 (expenses incurred) – 129.11 (deductible) = 170.89 euros
The result of the subtraction will indicate the portion to which the Irpef deduction can be applied. The maximum limit for the deduction of health care costs is 15,493.71 euros. Upon exceeding this sum, the deduction can be divided into four equal annual installments. This year, the list of healthcare expenses to which the deduction can be applied includes new specialist visits and healthcare professions as indicated here.
What is the speaking receipt and why is it fundamental for the deductions
As indicated by the Revenue Agency, this year: “the deduction is due if the expense is certified by an invoice or by a receipt”. There is also talk of a speaking receipt and it is that receipt on which the taxpayer’s tax code reference is also marked. In particular, as indicated in the Consolidated Income Tax Act in Article 10, paragraph 1, letter b, for the purposes of the deduction, the following receipt must be present:
- the quantity of products purchased;
- the nature of the products purchased;
- the recipient’s CF;
- the alphanumeric code of the drug purchased.
List of deductible and non-deductible drugs
Without the necessary premises, which drugs are deductible from 730? Below we offer a list of the categories of drugs admitted to the 2020 deduction:
- Medication, medicine and all other abbreviations or terminologies referring to drugs: as indicated by the Revenue Agency in resolution no. 156/2007, these give the right to the income tax deduction;
- Aic: it is possible that on the receipt, instead of the commercial name of the drug, there is a unique authorization code for a privacy issue. These drugs are also deductible as indicated in circular No. 40 of the ADE;
- Galenic drug / medicine: medicines prepared in pharmacies according to a medical prescription. These are deductible to the extent that their nature is specified;
- Ticket: wording relating to medicines supplied by the health service;
- Homeopathic: these are drugs recognized on the basis of Legislative Decree 219/2006;
- Phytotherapy drugs: medicines containing active substances of only plant origin. These are medicines recognized by AIFA which tests their safety and efficacy;
- SOP-OTC: these are over-the-counter or self-medication medicines that do not require a prescription.
All drugs that fall into one of the categories described are deductible. On the contrary, what cannot be deducted are: parapharmaceuticals and food supplements.