TAX BLOG

Medical Scheme Fees Tax Credit for the 2013 Tax Year

TAXPAYERS BELOW THE AGE OF 65 WITH NO DISABILITY

  • Qualifies for a Tax Credit as follows:
    • R230 per month for contributions made by the taxpayer and R230 for the first dependant; plus R154 per month in respect of each additional dependant.
  • A deduction in respect of contributions made by you
    • Less: four (4) times the medical tax credit as determined
    • Plus: out-of-pocket medical expenses (qualifying expenses) and other medical expenditure not recoverable from the medical scheme
    • less: 7.5% of your taxable income (excluding retirement fund lump sum and retirement fund lump sum withdrawal benefits) before this deduction.

 

TAXPAYERS WITH A DISABILITY BELOW THE AGE OF 65

  • Qualifies for a Tax Credit as follows:
    • R230 per month for contributions made by the taxpayer and R230 for the first dependant; plus R154 per month in respect of each additional dependant.
  • A deduction in respect of contributions made by you
    • Less: four (4) times the medical tax credit as determined
    • Plus: out-of-pocket medical expenses (qualifying expenses) and other medical expenditure not recoverable from the medical scheme

 

TAXPAYERS AGED 65 AND OLDER

The medical tax credit does not apply to a person who is 65 years and older. Such persons are still entitled to the full medical scheme contribution paid as a deduction.

 

WHAT KINDS OF OUT OF POCKET MEDICAL EXPENSES MAY BE CLAIMED?

Taxpayers may still claim for qualifying out-of-pocket medical expenses, subject to limits where applicable.

This includes expenses:

  • Actually paid for by the taxpayer and which have not been covered by a medical scheme;
  • And that appear as “claims not covered by scheme” on the medical tax certificate and the necessary receipts  can be produced as proof of payment.

 

Example: See Spread sheet:

Medical Deduction Calculation 2013 / Medical Credits SARS