What are the medical expenses eligible for deduction during pregnancy and childbirth?
Medical expenses associated with pregnancy and childbirth tend to be quite costly. Since your income may decrease due to time off work, you want to reduce the burden as much as possible. In this article, we will explain in an easy-to-understand way the “medical expense deduction” system, which allows you to receive a refund for a portion of your medical expenses. First, let’s take a look at how medical expense deductions work and the expenses that are eligible for pregnancy and childbirth .
How medical expenses deductions work
Medical deduction is a system where if your medical expenses for a year (January 1st to December 31st) exceed a certain amount (100,000 yen for households other than those exempt from resident tax), you can have a portion of your tax refunded from your taxable income when you file your tax return with the tax office . If you have a family, you can add up your medical expenses for the calculation, so keep all your family receipts together. This system reduces your taxable income and lowers your taxes, but it’s easier to understand if you think of it as “money coming back into your hands.” You can apply for medical expenses for all family members who share your household (even if they don’t live together), so you can add up the medical expenses you spent at the hospital for illness or injury.
Medical Expense Deductions for Pregnancy and Childbirth
Eligible expenses
Non-eligible expenses
< /tr>
Prenatal health examination fee
Hospitalization fee (for both mother and child)
Childbirth expenses
Public transportation expenses such as hospital visits
Taxi fee in case of emergency
1 month postpartum checkup
Breast milk external fee
Pregnancy test cost
Gasoline cost
Transportation expenses when returning home
Vaccination fee
Bed fee difference
Miscellaneous expenses during hospitalization
Diapers and milk charges
NIPT (prenatal diagnosis) fee
Expenses incurred for the treatment of illness or injury other than pregnancy and childbirth are eligible, but expenses incurred for personal reasons or cosmetic purposes are not eligible. In addition, the cost of prenatal testing such as NIPT is not eligible for medical expense deduction. For example, taking supplements during pregnancy is only eligible if a doctor determines it is necessary, and is not eligible if it is determined by the patient. If you want to take supplements for anemia during pregnancy, we recommend consulting a doctor before getting a prescription.
You may be wondering how much money you will actually get back. We have summarized the calculation method, so let’s calculate it with reference to the simulation.
How much will you get back through medical deductions?
The refund amount that you receive as a medical expense deduction can be calculated by multiplying your medical expense deduction amount by your income tax rate. There are three steps to this calculation, so please follow the steps to calculate.
①How to calculate medical expenses deduction
<Formula for calculating medical expenses deduction>
Total income is 2 million yen or more Medical expenses deduction = Total medical expenses (for one year) – amount reimbursed (insurance payment, etc.) – 100,000 yen
If your total income is less than 2 million yen, medical expense deduction = total medical expenses (for one year) – amount reimbursed (insurance payment, etc.) – total income x 5%
The “amount reimbursed” includes money received as a lump-sum childbirth and childcare allowance, a family lump-sum childbirth and childcare allowance, childbirth expenses, and spouse’s childbirth expenses, and must be deducted from medical expenses.
②Check the income tax rate
The income tax rate is determined by the amount of taxable income.
<Formula for calculating taxable income> Taxable income = total income (annual income – salary income deduction) – income deductions “Income deductions” include social insurance premium deductions (insurance premiums for pension, health insurance, employment insurance, etc.), spouse deduction, and life insurance premium deduction (life insurance, medical insurance, etc.).
Once you have calculated your taxable income, check your income tax rate from the “Income Tax Rates” table compiled by the National Tax Agency.
Taxable income amount
Income tax rate
Less than 1,950,000 yen< /td>
5%
More than 1.95 million yen – less than 3.3 million yen
10%
More than 3.3 million yen – less than 6.95 million yen
20%
< tr>
More than 6.95 million yen – less than 9 million yen
23%
More than 9 million yen – less than 18 million yen
33%
Over 18 million yen~4, Less than 0 million yen
40%
More than 40 million yen
45%
Reference material: National Tax Agency “Income tax rate“ < /cite>
③Multiply the medical expense deduction amount by the income tax rate
<Refund calculation formula> Medical expenses deduction refund = Medical expenses deduction amount x Income tax rate
You can calculate the amount you will get back by multiplying the numbers calculated in steps ① and ② by the formula above.
Simulation of medical expense deduction
It’s easier to understand if we apply specific amounts, so let’s set some conditions and run a simulation.
＜Conditions＞
Total medical expenses = 500,000 yen
Compensated amount: 150,000 yen
Annual income = 7 million yen (salary income deduction 1.9 million yen)
Income deduction = 1.2 million yen
Medical expense deduction amount: 500,000 yen (medical expenses) – 150,000 yen (compensation amount) – 100,000 yen = 250,000 yen
Income tax rate: 7 million yen (income) – 1.9 million yen (salary deductions) – 1.2 million yen (income deductions) = 3.9 million yen Income tax rate = 20% (see the income tax rate table)
Refund amount: 250,000 yen (medical expenses deduction amount) x 20% (income tax rate) = 50,000 yen.In this case, 50,000 yen will be refunded as medical expenses deduction.
How to apply for medical expenses deduction
In addition to the tax return that your company will file for you, you will need to prepare the necessary documents yourself to claim medical expenses. Let’s check the necessary documents and procedures so that you can complete the application within the deadline.
The tax return period is from February 16th to March 15th .
Generally, you should file your application at the tax office that has jurisdiction over the address where your resident registration is registered, but if the address on your withholding slip is different from your current address due to moving, you should file your application at the tax office that has jurisdiction over your current address.
You can also use the e-Tax service on the National Tax Agency’s website to complete your tax return from home, so be sure to give it a try.
What you need to apply for medical expenses deduction
You may be asked to submit receipts for medical expenses, so you must keep them as evidence for five years. Please do not throw them away after applying.
Fill out your tax return using your tax withholding slip as a reference
Choose one of the methods to prepare and submit your tax return. You can create an e-Tax form using a device that reads your My Number card or your smartphone, or by using the ID and password issued by the tax office.
The ID and password issued by the tax office will be required the next time you file your tax return, so please keep it in a safe place.
If you select “Print and submit,” please fill out your tax return following the guide, print the documents, and then mail them to your local tax office. If you do not have an internet connection or find it difficult to operate the internet, please bring the necessary documents to your local tax office and submit them in person.
You will need to fill in the medical expenses statement with the name of the person who received medical care, the name of the hospital, the amount, etc. If you create it using the National Tax Agency’s ” Medical Expenses Summary Form ,” it will even calculate the total amount, which is very convenient.
We have introduced the details of medical expense deductions, but if you have difficulty filling out the form, the tax office will also be happy to assist you. Please make use of the medical expense deduction system to reduce your burden even a little.
Since specific calculation methods and conditions vary depending on the tax laws and regulations of the country or region in which you are located, we recommend that you check the website of the tax authorities of each country or region or consult an expert for detailed information.
Q&A
Q
What is medical expense deduction?
Medical expense deduction is a system in which if you pay medical expenses over a certain amount in a year, a portion of them will be refunded from your taxes. Medical expenses related to pregnancy and childbirth are also covered by this system.
Q
Is NIPT (New Prenatal Testing) eligible for medical expense deduction?
The cost of NIPT (New Prenatal Testing) is incurred as a medical expense related to pregnancy and childbirth, but it is not included in the medical expense deduction. As medical expenses are deductible only for expenses directly related to medical treatment, prenatal diagnosis expenses are not eligible for medical expense deduction.
Q
Is there a way to deduct the medical expenses incurred when undergoing NIPT (New Prenatal Testing)?
Generally, the cost of NIPT (New Prenatal Testing) is not eligible for medical expense deduction, but related medical costs associated with pregnancy and childbirth (e.g., further medical treatment based on NIPT results) are not eligible for medical expense deduction. Expenses may be deductible. It may be helpful to consult your medical provider or tax professional regarding specific medical procedures and required documentation.
Q
When is the deadline to apply for medical expense deduction related to pregnancy and childbirth?
The deadline to apply for deductions for medical expenses related to pregnancy and childbirth is within the period for filing your final tax return. Normally, the tax return filing period is one month from February 16th to March 15th. You are required to prepare the necessary documents and apply within this period. Please note that if you miss the deadline, you will not be able to receive medical expense deduction for that year.
Q
What documents are required when applying for deduction for medical expenses incurred during pregnancy and childbirth?
To apply for a deduction for medical expenses incurred during pregnancy and childbirth, you will need your final tax return, medical expense receipts, withholding tax slip, My Number card, identification card, passbook, and seal. By preparing these documents and filing a final tax return, you can receive a medical expense deduction.
Article Editorial Supervisor
Private: Dr. Hiroshi Oka
NIPT Specialist Clinic, Doctor of Medicine Graduated from Keio University, School of Medicine
