Medical and Accident Expenses and Insurance Premiums: Which Costs Are Deductible?

Health expenses and insurance premiums account for a large portion of annual household costs in Switzerland. Fortunately, certain expenses can be claimed on your tax return. It is important to distinguish between them: while medical and accident costs are only deductible under specific conditions, insurance premiums can be claimed up to a maximum amount.

This article explains which costs are recognized for tax purposes, the required documentation, and the limits you need to observe.

Medical and Accident Expenses

Principle

Deductible are costs that are medically necessary and not covered by health or accident insurance.

Deductible Expenses

• Doctor and hospital fees
• Dental costs (treatments, but not purely cosmetic procedures)
• Medications prescribed by a doctor
• Aids such as glasses, hearing aids, or prosthetics
• Care costs (e.g., home care, retirement or nursing home)
• Transport to doctors or hospitals

Deductible Threshold and Deductible Portion

Medical and accident costs can only be deducted if they exceed a certain deductible.

• Federal level: 5% of net income
• Cantonal: Different rules may apply

Insurance Premiums

Principle

Insurance premiums can be deducted up to a maximum amount.

Deductible Insurances

• Health insurance premiums (basic and supplementary)
• Life insurance (savings or risk insurance)
• Accident insurance
• Liability and household insurance (partially, depending on canton)

Maximum Deduction

• Federal tax: Max CHF 1,700 per year for singles, CHF 3,500 for couples, plus CHF 700 per child
• Cantons: Different maximum deductions, often higher than federal limits

Combining Costs and Premiums

Many taxpayers confuse medical costs with insurance premiums. It is important to separate them clearly:

• Insurance premiums: Always deductible only within the maximum limits
• Medical and accident costs: Deductible only above the deductible threshold

Practical Examples

Example 1: Dental Bill

A family pays CHF 4,000 for a dental treatment, of which CHF 2,000 is not covered by insurance. These costs can be declared as medical expenses on the tax return if they exceed the deductible threshold.

Example 2: Health Insurance Premiums

A couple pays CHF 10,000 in health insurance premiums. Deductible at the federal level are only CHF 3,500 plus child allowances.

Example 3: Nursing Home Care

A retiree pays CHF 20,000 annually for care in a retirement home, not covered by insurance. These costs are tax-deductible.

Common Mistakes and Tips

Common Mistakes

• Deducting cosmetic procedures without medical necessity
• Mixing insurance premiums and medical costs
• Not submitting supporting documents (e.g., invoices, insurance statements)

Tips

• Always keep insurance statements and personal receipts
• Claim only medically necessary costs
• Observe different cantonal deduction limits
• Check whether care costs can also be considered under supplementary benefits

Conclusion

Medical and accident costs as well as insurance premiums offer important opportunities for tax optimization – but clear limits apply. While insurance premiums are deductible as a flat rate, medical and accident costs can only be claimed if they exceed the legally set deductible.

Proper documentation and a clear separation of costs are essential to fully and correctly utilize the available deductions.