How to Declare Health Plan on Income Tax?

How to Declare Health Insurance on Income Tax

Filing income taxes isn't always easy, so much so that many people turn to an accountant. However, this isn't an option for most people. Since this is about health, we'll help you by answering all your questions about declaring your health insurance plan on your income tax return.

Want to know how you can deduct expenses and the specific rules for each case? Keep reading.

How to declare individual health insurance on income tax?

If your health plan is individual, meaning you're the one paying the full amount, the statement is very simple. Simply request the Income Statement from your health plan, which some providers already make available on their website in the customer area.

Additionally, you can only declare these expenses if you have receipts or invoices, or if they appear on your Income Statement. Otherwise, you won't be able to declare them.

It is also very important that you keep these documents for at least 5 years, so that if the fine mesh requests clarification about them, you will have them on hand to prove it.

How to declare a corporate health plan on your income tax return

However, if you have a group health plan, declaring the health plan on your income tax or not will depend on whether you contribute to paying the monthly premiums.

Therefore, if you partially pay the plan's monthly fee, the amount your company pays must be subtracted before entering it into the form. In other words, you only declare what comes out of your pocket.

In these cases, the company must provide the employee with a report containing the health plan amounts paid by him/her, which must also be declared on the Payments Made form.

However, if the company pays the entire monthly health plan fee, the beneficiary will not need to declare it.

Dependents and beneficiaries

If your health plan includes dependents or beneficiaries (recipients of alimony by court order or agreement approved by public deed or court), you can also include their health plan expenses, but only for those who are registered as dependents in your declaration.

The problem is that often, dependents on your health plan aren't listed as dependents on your income tax return, or you're paying for a relative who isn't your dependent. This usually occurs when spouses, parents, or children who are your dependents on the plan file separately.

How to declare health insurance on income tax?

When declaring your health plan on your tax return, you must follow some rules:

• Payments Made form, under code 26;
• Enter the CNPJ and the name of the operator, the amount paid and the portion that was reimbursed and is not deductible;
• Please indicate whether the expenses were made with your own health plan, a dependent's plan, or a child supporter's plan;
• Follow the instructions on the income statement provided by the plan operator or your employer, in the case of a corporate plan;
• Import the Income Report into the program using the “import health plan file” button on the Payments Made tab.

How do I declare medical appointments and exams?

Expenses for medical appointments and exams are not declared with the health plan, but rather with the procedure itself on the Payments Made form. To do this, you must declare:

• Service provider information (name and CPF or CNPJ);
• Total amount in the “amount paid” field;
• Portion refunded in “non-deductible portion/refunded amount”.

All these expenses must be supported by a receipt, invoice, or income statement. Additionally, keep these receipts for at least five years from January 1st of the year following the year in which your tax return is processed. In other words, if your tax return is processed in 2021, the deadline begins January 1st, 2022.

About installments and refunds

Let's assume you're filing your 2021 income tax return and have paid for a procedure, such as surgery or treatment, in installments. Some of the installments were paid in 2020, but the remainder will be paid in 2021. In these cases, you should only report the amount paid in 2020, and the 2021 installments will only be included in the following year's income tax return (2022).

You may also have received a refund for a procedure. Don't forget to include the amount of the expense and the amount reimbursed. The difference between these amounts will be used to calculate the deduction.

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