Can Medical Expenses Covered by Insurance Be Deducted?

Understanding Tax Deductions for Medical Expenses Paid by Insurance

When it comes to tax deductions, it is crucial to understand who is eligible to claim expenses.
In general, for an expense to be considered deductible for tax purposes, it must be incurred by the taxpayer.
But what happens if the expenses are paid or reimbursed by a third party, such as an insurance company?

Exceptions to the Rule

Article 15, paragraph 1, letter c) of the Presidential Decree no.
917/86 establishes an exception to the general rule of non-deductibility of reimbursed expenses, specifically for medical expenses reimbursed by insurance.
But why does this exception apply?

The Revenue Agency specifies that medical expenses incurred in 2023 that are reimbursed in the same year cannot be included in the tax return.

Claiming Deductions for Insurance-Reimbursed Medical Expenses

Since 2020, the rules for deducting medical expenses have changed.
Some medical expenses now require traceable payment methods to qualify for the IRPEF tax bonus.
However, there are exceptions for medical expenses that are reimbursed by insurance.

For medical expenses paid with traceable means at private healthcare facilities, a 19% deduction is available for amounts exceeding €129.11, provided that the taxpayer’s fiscal code is on the receipt or invoice.

Deductions for Insured Medical Expenses

According to Article 15, paragraph 1, letter c) of the Italian Tax Code, the taxpayer can still claim deductions for medical expenses reimbursed by insurance under certain conditions.
This applies to contributions not eligible for tax relief or deductible, whether paid by the taxpayer or another party contributing to the taxpayer’s income.

Contributions made by the taxpayer are deductible up to €3,615.20 if they are paid to welfare institutions.
Excess amounts are considered taxable income.
Contributions made by an employer do not impact the taxpayer’s income but any exceeding amount is taxable.

If the insurance covers medical expenses, the taxpayer cannot claim deductions for those expenses.
However, any excess over the limit can be partially deducted.
This ruling was confirmed by the Piedmont Regional Tax Court with Judgment No.
640 of Panel 3, issued on July 29, 2021.

Claiming Deductions for Health Insurance Policies

Not all health insurance policies qualify for tax deductions.
Only policies covering accidents are eligible.
To benefit from tax advantages, payments must be traceable and not in cash.
The deduction can be reported in the tax return sections designated for medical expenses.

The tax deduction is 19% of the premium paid for incomes up to €120,000, with a decreasing scale above this threshold and no deduction for incomes exceeding €240,000.