Deductible Healthcare Costs in Amsterdam
Deductible healthcare costs are medical expenses that Amsterdam residents can deduct from their taxable income through income tax. These fall under extraordinary expenses and are only deductible above a threshold amount. They ease the financial burden of uninsured care, especially in an expensive city like Amsterdam, provided the Tax Authorities' conditions are met. For questions, contact the Amsterdam Legal Aid Office.
What Are Deductible Healthcare Costs for Amsterdam Residents?
In Amsterdam, deductible healthcare costs include medical and care expenses not fully covered by health insurance. They must be medically necessary for maintaining or restoring health. Only costs on the Tax Authorities' list qualify. This article builds on our overview of deducting healthcare costs and focuses on local relevance.
Legal Basis
The deduction rules are set out in the Income Tax Act 2001 (Article 6.17(1)(f) and Article 3.70a UR IB 2001). Extraordinary expenses such as healthcare costs are deductible in Box 1. The Tax Authorities update the list annually. For 2023: threshold is 1% of aggregate income (AI), minimum €135. Chronically ill or disabled individuals benefit from a 40% AI threshold with additional options. Amsterdam residents with high care costs due to urban rates often benefit from this.
Which Healthcare Costs Are Deductible in Amsterdam?
The Tax Authorities maintain a fixed list. Overview in table:
| Category | Deductible? | Example | Conditions |
|---|---|---|---|
| Medicines | Yes | Prescription medicines not insured | Doctor's prescription required |
| Aids | Yes | Hearing aid, prosthesis, walker | Medically necessary, detailed invoice |
| Diet costs | Yes | Medically prescribed diet food | Min. €120/year/person |
| Home nursing | Yes | District nursing, emergency pharmacy | Not reimbursed via LTCI/HIA |
| Vehicle tax for disabled | Yes | Tax on disabled vehicle | Tax Authorities' approval |
| Dentist without referral | No | Jaw correction | Referral required |
| Deductible excess | No | €385 (2024) | Not deductible |
Check the current Tax Authorities tool.
Threshold and Deduction Calculation
Deduction starts above the threshold: 1% AI (min. €135) in 2023. For AI €50,000: threshold €500. €1,200 costs? Deduction €700 at 36.93% rate. Chronically ill: lower threshold from 40% AI. Steps for Amsterdam residents:
- AI from tax return.
- Total invoices/prescriptions.
- Subtract threshold.
- Remainder x rate = benefit.
Practical Examples from Amsterdam
Example 1: Ms. Jansen from Amsterdam South (AI €40,000) buys hearing aid €2,500. Threshold €400, deduction €2,100, benefit ≈€775.
Example 2: De Vries family in East: diet €800, medicines €600, nursing €1,000. Total €2,400, AI €60,000, threshold €600, deduction €1,800. Extra for chronically ill child.
High Amsterdam healthcare prices make this benefit essential.
Rights and Obligations
Rights:
- Claim in income tax return, proof on request.
- Tax Authorities must prove non-qualification.
- Appeal to Amsterdam District Court.
Obligations:
- Keep receipts for 7 years.
- Correct AI; fines for fraud.
- No double reimbursement.
Frequently Asked Questions
Is a gym membership deductible?
No, unless medically prescribed and non-recreational. Proof required.
Is informal care allowance deductible?
Specific costs yes, such as transport, if on list and medically necessary. Allowance itself no.
Below threshold?
No deduction. Combine with other extraordinary expenses.
For partner/children?
Yes, in joint return (<27 years).
Tips for Amsterdam Residents
Maximize deductible healthcare costs:
- Digitalize: Photos of receipts.
- Use Tax Authorities app.
- Consult Amsterdam Legal Aid Office for review.
- Combine with Amsterdam Municipality care subsidies.