I. The Nature and Deduction Conditions of Major Disease Medical Insurance Expenses
Major disease medical insurance is a medical insurance service for some specific major diseases, aiming to reduce the economic pressure of individuals facing high medical expenses. According to the relevant provisions of China's tax law, the medical insurance expenses paid by an individual can be deducted from his/her personal income tax if certain conditions are met.
Specifically, these conditions usually include: the insurance cost must be actually paid by the individual and used to purchase a major medical insurance product in accordance with the national regulations; the deduction amount is usually subject to certain limitations, i.e., it cannot exceed the maximum deduction limit stipulated in the tax law; in addition, it is also necessary to provide the relevant proof of payment of the insurance cost and the supporting materials, so as to allow the tax department to verify.
The application and review process of pre-tax deduction
When an individual applies for pre-tax deduction of medical insurance expenses for major illnesses, he or she needs to prepare and submit the relevant application materials according to the requirements of the tax department. These materials usually include: proof of personal identity, proof of payment of insurance expenses, and medical insurance contract or policy. After submitting the application, the tax department will review the application materials to verify the authenticity and compliance of the insurance expenses.
If the audit is approved, the medical insurance expenses paid by the individual can be deducted when calculating taxable income, thus reducing the individual's tax burden. It is important to note that the specific deduction criteria and application process may vary by region and policy, so it is best for individuals to understand the specific local regulations before applying.
The significance and impact of pre-tax deduction
Allowing pre-tax deduction of major medical insurance expenses borne by individuals has certain positive significance for individuals and families. On the one hand, this can reduce the individual's tax burden and increase disposable income; on the other hand, it encourages more people to buy medical insurance for major illnesses, and improves the level of medical protection for the whole society.
However, it should be noted that the pre-tax deduction policy is not unlimited, but is subject to certain amount and conditions. This is both to ensure the fairness and reasonableness of the tax and to avoid the adverse consequences caused by the abuse of the policy.
In summary:
Individuals can enjoy the preferential policy of pre-tax deduction for major medical insurance expenses when they meet certain conditions. This policy helps reduce the tax burden on individuals, encourages more people to buy major medical insurance, and improves the level of social security. However, individuals need to understand the specific local regulations and procedures before applying to ensure that they meet the conditions for the deduction and provide complete application materials.
Legal basis:
The Individual Income Tax Law of the People's Republic of China
Article 6 stipulates:
Calculation of taxable income:
(1) The comprehensive income of a resident individual is calculated as the taxable income for each taxable year, less expenses of 60,000 yuan as well as special deductions, special additional deductions and other deductions determined by law. The balance is the taxable income.
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Special additional deductions, including children's education, continuing education, medical treatment for serious illnesses, interest on housing loans or housing rent, and expenditures for supporting the elderly, the specific scope, standards and implementation steps shall be determined by the State Council and reported to the Standing Committee of the National People's Congress for the record.
Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China*** and the State of China
Article 22 stipulates:
Special additional deductions provided for in Article 6, paragraph 1, subparagraph 1 of the Individual Income Tax Law include the expenses related to the taxpayer's children's full-time education, which are deducted at a fixed rate of 1,000 yuan a month for each child.
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The portion of out-of-pocket medical expenses incurred by a taxpayer in a tax year that exceeds 15,000 yuan is deducted accordingly within the 80,000 yuan limit.