In the course of the tax return preparation process, we are frequently asked which sickness and accident expenses are tax deductible.
Basically, the deduction of illness and accident expenses as well as disability-related costs is described in the circular letter No. 11 of the FTA. At the federal tax level, the deduction is reduced by 5% of the net income. This reduction is considered as a deductible of the taxpayer. Some cantons follow the same approach at the cantonal and communal tax level and reduce the deduction by 5% of the net income based on the tax return. However, there are cantons (e.g. Basel-Land) that waive the deduction of a deductible and accept deductible medical and accident expenses in full.
Generally, deductible sickness and accident costs are defined as "costs for measures to maintain and restore physical or mental health, in particular the costs of medical treatment, hospitalization, medication, vaccinations, medical apparatus, glasses and contact lenses, therapies, drug withdrawal measures, etc.". These include:
Costs for dental treatment (e.g. dental hygiene, remedying dental diseases)
Costs for curative measures (e.g. massages, physiotherapy)
Costs for the stay at a health resort (currently reduced by CHF 20 per day and person)
Costs for alternative medicine (if prescribed by a recognized naturopath)
Costs for medicines and remedies (if prescribed by a doctor or naturopath)
Costs of nursing care (if applicable, differentiation between nursing care and living expenses)
Costs of care in old people's homes and nursing homes
Costs for reproductive aids (e.g. hormone treatments, IVF, etc.)
Transportation costs (e.g. transport by ambulance, Rega, etc.)
Costs for diets (e.g. for celiac disease, diabetes, etc.)
Costs are deductible only to the extent that they were borne by the taxpayer and not reimbursed by the health insurance company or third parties, and must be substantiated by medical certificates, invoices, insurance receipts, etc.
Health insurance premiums are considered separately as insurance premiums and do not fall under sickness and accident expenses.
