Medical expenses deductions
Medical expenses deductions are part of a system whereby if the amount of medical care costs paid in one year,including those of family members, exceeds a certain standard, you can file a final tax return with the tax office to have the excess amount of medical care costs deducted from your taxable income and have some of your taxes refunded.
Calculation Method
Deductions for medical expenses are calculated in this manner.
Examples of cases in which medical expenses can be deducted
→ ¥4 million x 5% = ¥200,000 > ¥100,000
¥500,000 － ¥350,000 － ¥100,000 = ¥50,000 ( Amount of deduction for medical expenses )
¥50,000 － 20% = ¥10,000 ( Amount to be refunded )
When is the filing period for final tax returns?
| Application period | The filing period for a final tax return is the one-month period from February 16 through March 15. |
|---|---|
| Required documents |
The documents and other items needed include the final tax return form which can be prepared at the National Tax Agency website, your certificate of income and withholding tax, your official seal,and your deposit passbook of the account where you would like to receive your reimbursement. * Receipts such as medical expenses and pharmaceuticals related to the final income tax return must be kept at home for 5 years. For details, refer to the "They paid significant amount of medical expenses." on the website of the National Tax Agency. Please watch. https://www.nta.go.jp/english/taxes/individual/pdf/a-17.pdf https://www.nta.go.jp/english/taxes/individual/12009.htm |
The self-medication tax system(special exception for medical expense deductions)
Under the self-medication taxation system, when individuals who are engaged in efforts to maintain and improve their health and prevent disease purchase switch OTC drugs (drugs that have been diverted from prescription drugs, both prescription drugs and over-the-counter drugs) on and after January 1, 2017, the cost of the switch OTC drugs will be deducted from their income.
For details, refer to the "Self-medication tax system" on the website of the National Tax Agency.
Please watch.
https://www.nta.go.jp/english/taxes/individual/pdf/incometax_2018/64.pdf