The right to deduct rehabilitation allowance in practice - part I

Service-Tax

The privilege of each taxpayer is to use the possibility of deducting allowances from income or from tax, provided that they acquire the right to these allowances earlier. As part of the rehabilitation allowance, you can deduct from your income not only expenses for drugs, but also expenses enabling travel to treatment or equipment used up in medical equipment.

The right to deduct rehabilitation allowance - fuel costs, doctor's visit and ultrasound examination

The taxpayer has a child who was born with a congenital defect. After many operations, the child received a disability certificate and is also under constant care and undergoes continuous check-ups and ultrasound examinations every 3 months. A child's medical damage is permanent. The child takes medications on a permanent basis. During the follow-up visits, ultrasound examination and verification of the administered drugs are performed.

The taxpayer has doubts whether he can deduct the following expenses as part of the rehabilitation allowance:

  1. fuel to transport the child from the hospital to the clinic for the planned surgery,

  2. fuel for transport to hospital for checkups,

  3. paid ultrasound examinations ordered by the hospital necessary for the follow-up visit,

  4. fuel for travel for paid ultrasound examinations,

  5. fuel for transport to the hospital clinic,

  6. fuel for access to a private office,

  7. costs of a private visit to a specialist doctor,

  8. taxpayer's car liability insurance,

  9. fuel for transport to the clinic in order to take samples for testing ordered by a doctor,

  10. for publications with shipping costs describing the defect of the taxpayer's son?

When analyzing the circumstances, it can be concluded that, pursuant to Art. 26 sec. 7a point 14 of the Personal Income Tax Act in the version in force from 1 January 2018 the costs of using your own passenger car listed in points 1, 2, 4, 5, 6, 8 and 9, the taxpayer has the right to deduct from income in the amount not exceeding in the tax year, the amount of PLN 2,280. Expenditure on publications concerning the taxpayer's son's illness included in point 10 pursuant to Art. 26 sec. 7a point 4 of the Personal Income Tax Act along with shipping costs.

On the other hand, the legislator did not provide for the expenses for paid ultrasound examinations and the costs of a private visit to specialist doctors as deductible from income under rehabilitation relief.

The same position is presented by the Director of the National Tax Information in the individual interpretation of 12/01/2018. with reference number 0112-KDIL3-2.4011.347.2017.1.MK.

Is it possible to deduct the costs of rehabilitation, stays, travels by own car and its repairs from the income under the rehabilitation allowance?

The taxpayer works under an employment contract for an indefinite period. Moreover, it has a moderate disability certificate issued by the Municipal Disability Assessment Team. The taxpayer owns a passenger car, which she used to travel to rehabilitation camps, more than 500 km away from her place of residence. The trip to the camps was confirmed by a referral written by a neurologist. The taxpayer also benefited from permanent, necessary rehabilitation (has the necessary personal purchase documents) prescribed by an orthopedist, neurologist or neurosurgeon. Due to the necessity to maintain the car, with which she received the above treatments, she incurred costs such as:

  1. compulsory third party liability insurance,

  2. car repair with the replacement of the necessary wear parts (shock absorbers, brake discs and pads, oil and air filters, brake fluid, tire replacement),

  3. checking the technical condition of the car.

The taxpayer has personal documents confirming the costs incurred. In these circumstances, will the above costs constitute deductible expenses from the income in the annual tax return under the rehabilitation allowance?

The taxpayer has the right to deduct the rehabilitation allowance from income up to the limit of PLN 2,280. The taxpayer, being a disabled person and having a certificate of moderate disability, had to travel to camps and undergo rehabilitation treatments ordered by a specialist doctor. It should also be emphasized that these expenses were not financed from the PFRON resources or from any other fund. In connection with the above, the expenses incurred by the taxpayer for using his own car to travel for the necessary treatments will be deductible from income under the rehabilitation relief, of course, up to the limit of PLN 2,280.

A similar position was taken by the Director of the National Tax Information in the individual interpretation of 09/01/2018. with reference number 0114-KDIP3-3.4011.505.2017.1.JK3.

Can the consumable materials of medical equipment be deducted from the income under the rehabilitation allowance?

The taxpayer has a disabled son with a moderate certificate. The son is underage and has no income. My son suffers from type 1 insulin-dependent diabetes. As part of his treatment, he uses an insulin pump and a system for continuous glucose monitoring. Permanent use of the equipment, and such in the case of the taxpayer's son, requires the replacement of accessories that wear out during the use of the equipment, i.e .:

  1. in the case of an insulin pump - insulin containers, infusion sets, pump service pack, device (stamp) for inserting punctures, strap for attaching the insulin pump,

  2. in the case of a system for constant monitoring - a sensor that wears out every 14 days.

The taxpayer therefore doubted whether the purchase of the above-mentioned equipment would be deductible from the income in the annual tax return as part of the rehabilitation relief.

Analyzing art. 26 sec. 7a point 3 of the Personal Income Tax Act, it should be stated that the expenses for the purchase of equipment for the insulin pump and the system for continuous glucose monitoring (sensors and reader) are included in the expenses related to facilitating the life activities of the taxpayer's son, and therefore they are deductible in the annual tax return as part of the rehabilitation allowance, of course, after meeting the other conditions (issuing a disability certificate, certificates confirming the necessity to use treatments issued by a specialist doctor, having personal invoices documenting the expenses incurred), however, these were met in this case.

A similar position was presented by the Director of the National Tax Information in the individual ruling of 19/12/2017. with reference number 0114-KDIP3-3.4011.444.2017.2.AK.