medical expenses deduction in Japan ( iryohi kojo = 医療費控除 )

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Medical expenses deduction ( Iryohi kojo = 医療費控除 ) in Japan

In the case a person goes to the hospital or is hospitalized and pay medical expenses, if she files final tax return ( kakutei shinkoku ), she can reduce amount of taxable income.

If she pays medical expenses for her family members living within the same household, her payment is also treated as medical expenses.

In the case she goes to hospital by train, this transportation fee is included in “medical expenses”.

However, bed surcharge is not included in this “medical expenses”.

If she breaks her born and purchases crutches, her payment is not included in this “medical expenses”.

In the case the amount of her medical expenses does not exceed 100,000 yen per a year, she can not apply for medical expenses deduction. And maximum amount of deduction is 2 million yen.

If annual amount of her medical expenses is 110,000 yen, she can apply for medical expenses deduction for 10,000 yen.
If annual amount of her medical expenses is 2,010,000 yen, she can apply for medical expenses deduction for 2 million yen.

In the case she can apply for medical expenses deduction, valid period is 5 years.

For example, today is assumed to be 1st May 2016.
In this case, she can apply for medical expenses deduction for year of 2011,2012,2013,2014,2015.
( In the case she did not apply for medical expenses deduction for these years. )

Necessary documents to apply for medical expenses deduction.

1  Application form of final tax return.

You can acquire it at website of national tax agency of Japan( Kokuzeicho = 国税庁 ).

2 Receipt of medical expenses issued by hospital. Scanned copy is not available.

3  Receipt of transportation cost or detailed record of transportation.

For example  “January 1st 2016 Tokyo station to Shibuya station, by train. Train fee 180 yen. To go to Shibuya hospital.”

4 Certificate of amount of income and withholding tax ( Gensen choshu hyo = 源泉徴収票 ).

In the case, amount of annual income is 2 million yen, 5 % of her income is reimbursed.
In order to prove her income amount, this certificate is necessary.
So, in the case her annual income amount is less than 2 million yen, even if amount of medical expenses does not exceed 100,000 yen, she can apply for medical expenses deduction.

 How to fill in application form of final tax return.

Assumed a person purchased medical insurance in 2015.
She paid medical expenses of 350,000 yen in January 2nd 2016.
And she received 50,000 yen from insurance company.
The amount of her annual salary is 5 million yen.
In this case, the amount she fills in application form of final tax return is
350,000 yen – 50,000 yen = 300,000 yen.
300,000 yen – 100,000 yen = 200,000 yen.

So, she can reduce  the amount of taxable income by 200,000 yen.

Sample of application form of final tax return
medical expenses deduction of Japan

medical expenses deduction of Japan

medical expenses deduction of Japan shinkokusho
When she has filled in application form of final tax return, she can go to tax office ( Zeimuso ) that has jurisdiction over her domicile in Japan.

In the case, she is salaried worker, her income tax is already withheld by her employer.
So, if she applies  for medical expenses deduction, a part of her withholding money is reimbursed to her bank account.
It will take several months to receive money from tax agency.

Last updated 2016/1/13

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