Tax Tip 8 - Health Insurance & Tax Return
"An apple a day keeps the doctor away" – exactly. But how does it work when it comes to deducting medical expenses, insurance premiums, and deductibles in your tax return? Here, you'll find essential tips to make the most of your tax return.
Many health insurance providers issue annual statements of medical costs and premiums upon request, making it easier to declare medical and accident expenses.
Which medical expenses are tax-deductible?
- Medical expenses
- Alternative medicine (provided by recognized naturopaths)
- Dental expenses (treatments, corrections, dental hygiene)
- Hospital stays
- Medications
- Vaccinations
- Medical aids: glasses, laser eye surgery, contact lenses, hearing aids, prostheses
- Therapies: massages, spa treatments, occupational therapy, speech therapy, psychotherapy
- Costs for diets or special food (e.g., for diabetes, celiac disease)
Special conditions
- Flat-rate deduction for the federal government and some cantons
- Deductible and co-payments are tax-deductible
Practical Tip 1: Purchases made at the pharmacy without a doctor’s prescription are often forgotten. Collect these receipts digitally using Smart eTax for efficient organization.
Practical Tip 2: Always enter the maximum allowable amount for health insurance premiums in your tax return.
Where to declare medical expenses on the tax return?
Page 3: Additional deductions under "Medical and accident expenses."
Examples of deductibles and allowances by canton:
Canton of Aargau: Tax guide
Deductible: Net income x 5 divided by 95. All expenses above this deductible are tax-deductible.
Canton of Bern: Tax guide
Deductible: 5% of net income. Maximum allowable deduction for health insurance premiums: CHF 3'600 for married couples, CHF 1'800 for single individuals.
Canton of Zurich: Tax guide
Deductible: 5% of net income. Maximum allowable health insurance premium deduction: CHF 5'200 for married couples.
Canton of Lucerne: Tax guide
Deductible: 5% of net income. Maximum allowable health insurance premium deduction: CHF 5'000 for married couples.
Canton of St. Gallen: Tax guide
Deductible: 2% of net income. Maximum allowable health insurance premium deduction: CHF 6'400 for married couples.
Conclusion
Deducting medical expenses and health insurance premiums represents a significant opportunity to reduce your tax burden. With strategic planning and the use of digital tools like Smart eTax, you can optimize your tax return and take full advantage of the available deductions in your canton.