Tax Relief on Private Assessment Ireland: Med 1, Incapacitated Child Credit, and What You Can Claim

Private assessments in Ireland are expensive. A psycho-educational assessment costs €650–€1,800. A combined autism and ADHD evaluation runs €2,648–€2,737. A general clinical assessment is approximately €1,600. Few families can absorb these costs without feeling the strain.

What many parents do not realise is that a portion of these costs can be recovered through the Irish tax system. The two most relevant mechanisms are health expense tax relief (historically known as the Med 1 claim) and the Incapacitated Child Tax Credit. Using both correctly can reduce the real-terms cost of private assessments by a meaningful amount.

Health Expense Tax Relief (the "Med 1" Claim)

The Revenue Commissioners allow individuals to claim income tax relief on qualifying medical expenses that are not reimbursed by insurance or any other source. This is done through the Health Expenses section of your annual tax return on Revenue's myAccount portal. In older language, this was called a "Med 1" claim — the form no longer exists as a paper document, but the term is still widely used.

Rate of relief: Tax relief on health expenses is granted at the standard rate of income tax, which is currently 20%. This applies regardless of whether you are a standard-rate or higher-rate taxpayer. Unlike many other tax reliefs in Ireland, health expenses are not relieved at your marginal rate — everyone gets 20%.

What qualifies: The Revenue Commissioners publish a list of qualifying health expenses. Private assessments conducted by registered professionals are generally eligible. This includes:

• Fees paid to a consultant physician or surgeon
• Fees paid to a clinical or educational psychologist for assessment and diagnosis
• Fees paid to a speech and language therapist, occupational therapist, or other CORU-registered health and social care professionals for assessment

The key qualifier is that the professional must be appropriately registered. For psychologists, this means registration with the Psychological Society of Ireland (PSI). For OTs and SLTs, registration with CORU (the Health and Social Care Professionals Council).

What does not qualify: Ongoing therapy sessions are sometimes treated differently from diagnostic assessment fees. Check the Revenue guidance directly, as the distinction between assessment (which qualifies) and ongoing therapeutic intervention (which may qualify but has specific conditions) matters for maximising your claim.

How to claim: Log in to myAccount at Revenue.ie. Navigate to Health Expenses and enter the total qualifying expenses paid in the relevant tax year. Keep all receipts from the assessment provider — Revenue can request these if your claim is audited. Claims can be made for the current year and back four years.

Practical example: If you paid €1,200 for a private psycho-educational assessment, a 20% relief claim returns €240. On a €2,600 autism assessment, the return is €520. It does not eliminate the cost, but it reduces it.

The Incapacitated Child Tax Credit

The Incapacitated Child Tax Credit is a more significant relief specifically available to parents or guardians of a child who is permanently incapacitated, either physically or mentally. It is separate from the health expense claim and operates as a direct credit against tax liability.

What it is: A tax credit of €3,300 per qualifying child per year (current rate — verify on Revenue.ie for the most up-to-date figure). A credit directly reduces your tax bill rather than reducing the income on which tax is calculated. For a family paying income tax, a €3,300 credit is €3,300 back.

Who qualifies: The child must be under 18, or if over 18, must be permanently incapacitated and unable to be self-supporting. The incapacity must be physical or mental. Conditions that have been recognised for this credit in practice include autism spectrum conditions, intellectual disability, and certain medical conditions with educational impact — but Revenue's assessment of each case is based on the individual's functional incapacity.

What you need to apply: Revenue requires a medical certificate from a registered medical practitioner confirming the nature and permanence of the incapacity. This is typically a GP or consultant's letter, not an educational psychology report — though a clinical diagnosis confirmed by a psychiatrist or paediatrician supports the application strongly. The certificate must address both the diagnosis and the ongoing, permanent nature of the condition.

How to apply: Complete the application via Revenue's myAccount (Tax Credits section) or submit the relevant form with the supporting medical certificate. Once approved, the credit is applied to your tax credits for future years and can be backdated for previous years where the child was eligible.

Important caveat: This credit applies to incapacity in the statutory sense, and Revenue makes individual determinations. A diagnosis of ADHD or dyslexia without significant functional incapacity has in some cases been declined. Autism spectrum conditions with significant functional impact have generally been approved. The specific wording of the medical certificate from your GP or consultant is important — it should describe the functional limitations of the condition, not only the diagnostic label.

If you have applied and been refused, you can appeal the decision to the Tax Appeals Commission.

Combining Both Claims

These two reliefs are separate and can both be claimed in the same year:

1. Health expense tax relief covers the cost of the private assessment itself at 20%
2. Incapacitated Child Tax Credit is an annual credit against tax liability for eligible families

A family that pays €2,600 for a private autism assessment and qualifies for the Incapacitated Child Tax Credit could in principle recover €520 through health expense relief on the assessment, plus €3,300 per year through the credit. The credit alone, if the child is eligible and the family has sufficient tax liability to absorb it, represents a significant ongoing reduction in the real cost of navigating a system that the state has largely failed to fund adequately.

The Domiciliary Care Allowance: A Related Financial Support

Separate from tax relief, families of children with significant disabilities may be entitled to the Domiciliary Care Allowance (DCA) — a monthly payment from the Department of Social Protection for the ongoing care required by a child aged under 16 with a severe disability.

The DCA is not means-tested. It is based on the care needs of the child. The qualifying condition is that the child requires "substantially more" care and attention than a child of the same age without a disability.

A supporting medical report from a GP or specialist that details the level of care required is central to the application. An AON report or a private clinical assessment that documents the day-to-day care requirements of the child strengthens the DCA application.

If you are refused DCA, you have the right to request a review of the decision and subsequently to appeal to the Social Welfare Appeals Office.

Keeping Records

Tax relief claims and benefit applications all depend on documentation. From the moment you pay for a private assessment, file:

• The receipt or invoice from the clinic or psychologist, showing the amount paid, the date, and the professional's name and registration details
• Any letters confirming the child's diagnosis from registered clinicians
• Correspondence with Revenue confirming your credits

For the Incapacitated Child Tax Credit, retain the medical certificate issued by your GP or consultant. If you are asked to resubmit in later years, having the original certificate makes this straightforward.

The Broader Picture: The Assessment System and Your Costs

The financial calculus of private assessment in Ireland is stark. The public HSE pathway is free but currently runs 18–30 months overdue in most areas. The private pathway costs €650–€2,737 depending on what is being assessed. Tax relief at 20% and an annual tax credit for eligible families partially offset this — but the fundamental problem is that parents are funding a service the state is legally obligated to provide.

Knowing the financial recovery mechanisms available to you does not change that underlying injustice. But it does mean that the real cost of private assessment, after tax relief and applicable credits, is materially lower than the sticker price.

The Ireland Educational Assessment Decoder covers financial supports including the DCA application process, tax relief on assessment fees, the Incapacitated Child Tax Credit, and the Assistive Technology Grant — alongside the full advocacy toolkit for navigating the school and HSE systems once the assessment is complete.

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