Medical and Give Maternity Expense are Conditionally Tax Deductible
When people choose Itemize Deductions on their 2023 personal income tax, they should pay attention to the conditions when reporting medical and maternity expenses. Not all expenditures can be reported as deductions.
For example, When Mr. Lee filed his PIT return for 2013, he reported a deduction of NT$300,000 medical expenses for his dependent children, including NT$250,000 for medical expenses spent at private hospital A and NT$50,000 for medical expenses spent at private clinic B. After verification, following items are the deduction Mr. Lee could file :
- Private Hospital A’s medical expenses NT$50,000 out of NT$250,000 was covered by commercial insurance, so Mr. Lee could only report deduction NT$200,000.
- Private Clinic B is not a medical hospital or institute conducted by the National Health Insurance Bureau, nor a The Ministry of Finance certified accounting-qualified hospital with complete and correct accounting records (Note*), the fees paid by Mr. Lee to the clinic did not comply with the tax law and were not allowed to be reported as deductions.
In result, Mr. Lee could file NT$200,000 in total for medical expense deduction.
