![]() Remember this won't include expenses you incurred but didn't submit to medical aid. (If you submit ALL your medical expenses to your medical aid, this amount is normally reflected on your tax certificate from the Medical Aid as 'claims not paid', 'amount not reimbursed' or something similar. Out-of-pocket medical costs, as per SARS, are those expenses that you’ve paid for yourself, which have not been reimbursed from medical aid. Out-of-pocket expenses are a bit more complex. those not reimbursed or claimed from medical aid)Įxcess medical aid contributions are relatively straightforward to work out as you’ll use the total amount you paid towards medical aid as your base amount and then apply the formula applicable to your individual situation. Qualifying out-of-pocket medical costs (i.e.The Additional Medical Expenses Tax Credit is an additional tax reduction that takes the following two amounts in consideration: If not, completing the medical aid contributions section of your annual tax return will apply the permitted credit for your advantage. as a deduction from your salary or wages, your employer is obliged to use the credit system to adjust your PAYE tax accordingly. ![]() If you're paying your contributions via your employer, i.e. Note that this is a flat rate per month and doesn’t take your taxable income into consideration. John's tax liability is therefore decreased by R1,283 (2019 & 2020: R1,247) per month. If John pays for medical aid for himself, his wife and his 3 children, his medical scheme fees tax credit will be calculated as follows. SARS calls this rebate the Medical Scheme Fees Tax Credit and it applies to the fees paid by a taxpayer to a registered medical scheme for you (as the taxpayer) and your dependants. Tax Deductible Medical Expenses Medical Aid Contributions Any other person recognised as a dependent in terms of the rules of a medical scheme or fund.mother, father, sibling, mother or father-in-law, grandparent or grandchildren) Any other member of your family who relies on you for family care and support (e.g.under 26 years of age, but partly or entirely dependent on you for maintenance, not yet liable to pay normal tax themselves and a full-time student at a publicly recognised educational institution such as a university or technikon.under 21 years of age, but partly or entirely dependent on you for maintenance and not yet liable for normal tax themselves, or.son, daughter, stepchild or children, adopted child or children) who was alive during any part of the year of assessment, and provided that on the last day of the year of assessment he / she was unmarried and: A child and the child of a spouse (e.g.Who SARS Considers as Dependents for Medical Expense Claims For this reason, it’s important to understand what SARS considers as dependents. This means that if you don’t earn an income, but do contribute a medical aid, you can’t claim the medical credit.īut many people are unsure of what medical expenses are allowed, and even more unaware of the medical aid tax credit calculations used.īefore we get into the actual numbers, though, it’s likely you’re not only paying for your own medical expenses but probably for those of your immediate and sometimes extended family too. You can't carry any unused credit over to the next tax year and it won't ever result in a negative amount or standalone refund from SARS. ![]() This means that a portion of your qualifying expenses, in this case medical related spend, is converted to a tax credit, which is deducted from your overall tax liability (the amount of tax you have to pay SARS). Luckily, certain medical expenses come with a bit of tax relief in the way of tax credits.Ī tax credit is a non-refundable rebate. Private medical treatment is increasingly pushing the limits of medical aid scheme benefits and our wallets. Medical expenses are nothing to sneeze at.
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