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Medical tax deductions explained in simple language

on Wednesday, 03 June 2015. Posted in Tax

Medical tax deductions explained in simple language

Image license: https://creativecommons.org/licenses/by/2.0/

Image title: The Cyclist's Apartment

Update: Article updated for the 2018 and 2019 tax year.

The focus in the explanation below is on a person without tax knowledge that would simply like to understand what they are allowed to deduct for their tax.

All the amounts used below are for the 2018 tax year, i.e. 01/03/2017 – 28/02/2018.

The first allowable deduction is for any contributions you make to a registered medical aid. The deduction system consists of a tax credit that you receive to deduct from the amount of tax you have payable for the relevant tax year.  If, for example, you had to pay R5 000 tax for the year you will now receive a tax credit, say R1 000, which you can deduct from the R5 000. Therefore the tax payable is now only R4 000.

Not important to remember (but you will sound smart with your colleagues and friends), this deduction is called the Section 6A medical scheme fees tax credit.

 

2018 Tax year (01/03/2017 - 28/02/2018)

 

Let us examine how the Section 6A medical scheme fees tax credit for the 2018 tax year (2019 below) is determined.

Assuming the taxpayer is below the age of 65 and there is no member on the taxpayer’s medical aid with a permanent disability (in the case of the taxpayer being older than 65 and or disability involved the amounts and rates will differ):

For each month of the tax year that the taxpayer (main member) have belonged to a medical aid you get a tax credit of R303.00. If a taxpayer has any dependents on the medical aid, such as the taxpayer’s partner or children the taxpayer will receive more tax credits. For the first dependent the taxpayer will receive an extra R303.00, for any additional dependents the taxpayer receives an additional R204.00 for each dependent.

Section 6A deduction:

Let us have a look at John’s family.

Thus if it is a family of John, John’s Wife and three children where John is the main member of the medical aid, the total monthly tax credit will be:

John (main member) R303.00
John’s Wife (first dependant) R303.00
Child One (additional dependent) R204.00
Child Two (additional dependent) R204.00
Child Three (additional dependent) R204.00
Total tax credit per month R1 218.00
Total tax credit for the year R14 616.00

However, this is not the only possible tax credit.

There is also a tax credit for additional medical expenses. Now, if you want to sound smart you can tell your friends about the Section 6B additional medical expenses tax credit:

This one is a bit trickier. You will apply the following formula:

Your total contributions to a medical aid for the relevant tax year

Less:

4 x [the tax credit that you received under section 6A (the one we looked at above)]

Plus:

All the qualifying medical expenses that were not paid by the medical aid in the relevant tax year (out of pocket expenses).

Less:

7.5% of your taxable income (with some other minor technicalities which I will not mention here).

Equals:

The excess amount

Multiplied by 25%, equals:

The section 6B medical aid tax credit

Usually, a good indicator as to whether you will qualify for the additional credit is the rule of thumb to take your annual salary x 7.5% and determine whether you made additional medical expenditure above that amount.

Let us continue with the example of the family of John. We will work with the following assumptions:

  • John paid R5 000 to a medical aid on a monthly basis, R60 000 for the full tax year.
  • John paid R35 000 of medical expenses out of his pocket during the relevant tax year.
  • John earned a salary of R300 000 during the relevant tax year, which was his only taxable income.

Section 6B deduction:

R60 000 (total medical aid contributions)

Less:

4 x R14 616.00 (section 6A tax credit)

= R1 536

Plus:

R35 000 (medical expenses John covered from his pocket)

= R36 536

Less:

R22 500 (R300 000 x 7.5%) (7.5% of John’s taxable income)

= R14 036 (excess amount)

Multiplied by 25%, equals:

R3 509 (section 6B medical aid tax credit)

Thus John’s total medical aid tax credit for the year will be:

R14 616 (Section 6A) + R3 509 (Section 6B)

= R18 125.00

It is important to note that you can only deduct this tax credit against tax payable. In other words, if you have no tax payable (before this deduction) you will not get the R18 125 as a refund. Also if you have R10 000 tax payable (before this deduction), you will not get R8 125.00 as a refund.

2019 Tax year (01/03/2018 - 28/02/2019)

 

Let us examine how the Section 6A medical scheme fees tax credit for the 2019 tax year (2018 above) is determined.

Assuming the taxpayer is below the age of 65 and there is no member on the taxpayer’s medical aid with a permanent disability (in the case of the taxpayer being older than 65 and or disability involved the amounts and rates will differ):

For each month of the tax year that the taxpayer (main member) have belonged to a medical aid you get a tax credit of R310.00. If a taxpayer has any dependents on the medical aid, such as the taxpayer’s partner or children the taxpayer will receive more tax credits. For the first dependent the taxpayer will receive an extra R310.00, for any additional dependents the taxpayer receives an additional R209.00 for each dependent.

Section 6A deduction:

Let us have a look at John’s family.

Thus if it is a family of John, John’s Wife and three children where John is the main member of the medical aid, the total monthly tax credit will be:

John (main member) R310.00
John’s Wife (first dependant) R310.00
Child One (additional dependent) R209.00
Child Two (additional dependent) R209.00
Child Three (additional dependent) R209.00
Total tax credit per month R1 247.00
Total tax credit for the year R14 964

However, this is not the only possible tax credit.

There is also a tax credit for additional medical expenses. Now, if you want to sound smart you can tell your friends about the Section 6B additional medical expenses tax credit:

This one is a bit trickier. You will apply the following formula:

Your total contributions to a medical aid for the relevant tax year

Less:

4 x [the tax credit that you received under section 6A (the one we looked at above)]

Plus:

All the qualifying medical expenses that were not paid by the medical aid in the relevant tax year (out of pocket expenses).

Less:

7.5% of your taxable income (with some other minor technicalities which I will not mention here).

Equals:

The excess amount

Multiplied by 25%, equals:

The section 6B medical aid tax credit

Usually, a good indicator as to whether you will qualify for the additional credit is the rule of thumb to take your annual salary x 7.5% and determine whether you made additional medical expenditure above that amount.

Let us continue with the example of the family of John. We will work with the following assumptions:

  • John paid R5 000 to a medical aid on a monthly basis, R60 000 for the full tax year.
  • John paid R35 000 of medical expenses out of his pocket during the relevant tax year.
  • John earned a salary of R300 000 during the relevant tax year, which was his only taxable income.

Section 6B deduction:

R60 000 (total medical aid contributions)

Less:

4 x R14 964.00 (section 6A tax credit)

= R144

Plus:

R35 000 (medical expenses John covered from his pocket)

= R35 144

Less:

R22 500 (R300 000 x 7.5%) (7.5% of John’s taxable income)

= R12 644 (excess amount)

Multiplied by 25%, equals:

R3 161 (section 6B medical aid tax credit)

Thus John’s total medical aid tax credit for the year will be:

R14 964 (Section 6A) + R3 161 (Section 6B)

= R18 125.00

It is important to note that you can only deduct this tax credit against tax payable. In other words, if you have no tax payable (before this deduction) you will not get the R18 125 as a refund. Also if you have R10 000 tax payable (before this deduction), you will not get R8 125.00 as a refund.

 

Lastly, you can get all the relevant medical aid contributions, the number of members, etc. on your tax certificate that your medical aid provides to you on an annual basis. You have to keep this certificate for if SARS asks you to provide it as evidence for your deduction.

Author: Chris Herbst

Get our iOS app to help you with monthly and annual payroll tax calculations (including medical aid section 6A): https://itunes.apple.com/za/app/taxtree/id1263890353?mt=8

Would you like us to complete your tax return: https://www.chconsulting.co.za/online-services/individual-tax-return

Contact: https://www.chconsulting.co.za/contact

Comments (152)

  • Don Boroughs

    20 August 2015 at 10:35 |
    I'm not an accountant, but the method of calculating the 6B credit described here does not agree with the methods I see on the SARS, MoneyWeb and SelfMed websites. They take the 25% only after the 4x6A credit has been subtracted from medical aid contributions. They also use only 25% of the figure for out-of-pocket expenses minus 7.5% of income. This methodology counts all of out-of-pocket expenses minus 7.5% of income as a credit. Is there a good reason for the discrepancy?

    reply

    • Chris Herbst

      21 August 2015 at 16:07 |
      Hi Don, thank you for pointing this out. I have consulted the income tax act and your are indeed correct, my apologies for the error. The 25% should be multiplied at the end of the calculation. I have updated the post to correct the error. You can see the relevant legislation from the income tax act at: http://www.acts.co.za/income-tax-act-1962/index.html?6_normal_tax_rebates.php

      reply

      • Chris Herbst

        21 August 2015 at 16:20 |
        To be mathematically clear you take: [(total medical aid contributions - 4 x section 6A credit) + additional qualifying medical expenses - 7.5% of taxable income] x 25%

        reply

  • Carey

    26 March 2016 at 12:56 |
    If over 75 and contributions are made by your ex employee how does the calculation differ? Kind regards

    reply

  • Genna-Leigh Geldenhuys

    01 June 2016 at 13:57 |
    Hi Chris,

    I was wondering what would happen in the following situation: tax payer pays for wifes Medical every month and also pays for additional medical expenses as the wife is not working. The wife is the main member of her own her own medical aid and is not on the husbands medical as she is a chronic diabetic and her husbands medical aid would not suffice. Can this large amount spent on his wifes medical aid and her medical condition be rebated in any way?

    reply

    • Chris Herbst

      02 June 2016 at 11:33 |
      Hi Genna-Leigh,

      Thank you for your question. Since it is a spouse paying for the additional medical expenses he will be able to include these expenses under the section 6B calculation of his personal tax return. However please note that the section 6B calculation includes a step where the additional expenses will be reduced by 7.5% of the spouse's annual taxable income - which may nullify the additional deduction.

      reply

      • Inga

        05 July 2017 at 06:19 |
        Hi

        What about section 6A. Is it only to the main member?

        I am currently under a work medical aid and not allowed to add my parents to it. As such i have made my dad the main member to cover him and my mom. I pay for the premiums a d additional expenses.

        reply

        • Chris Herbst

          05 July 2017 at 13:51 |
          Hi Inga,
          You will be able to claim for these deductions. However your parents will be deemed as your dependents. Thus if you are the only main member on your own medical aid, you will be able to claim one of your parents as first dependent (the higher rate) and the other parent as an additional dependent (the lower rate). If you already have a first dependent on your own medical aid, you will have to handle both your parents as additional dependents (at lower rate). Also SARS may ask for verification in which case you will need to submit the medical aid certificate of your parents as well as proof that you have made the payments.

          reply

  • Michele Laurence

    27 June 2016 at 12:36 |
    Hi,

    My husband is the main member on our medical aid and I am the dependant. But I pay all the extra medical expenses as I am the main bread winner. And we are doing fertility treatment. The statements for the fertility treatment is on my name. Under whose tax return do I load it? Mine or my husbands. Any help will be greatly appreciated.
    Thanks

    reply

  • Chris Herbst

    27 June 2016 at 16:33 |
    Hi Michele,

    Thank you for your comment. Assuming that your expense is a qualifying expense (Services rendered and medicines supplied by a registered medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopaedist), it will make sense to claim it on your husband's tax return (since his annual taxable income is lower and thus your additional tax credit will be higher on his side). To the best of my knowledge you are free to claim it on your own or your husband's tax return since you are in a spousal relationship. If SARS does query this you can explain that your are in a spousal relationship.

    reply

  • Jolene nel

    28 June 2016 at 20:17 |
    Hi there, please can u help me answer a question that's been hanging over my head for ages. My husband is the main member on our medical aid, we paid in a ridiculous amount of money last year for medical out of our own pockets. My husband is a apprentice so he's below the tax threshold, when we submitted his tax on efiling it said we had a 45k tax credit.. what does this mean, will this ever be refunded back to him? Thank u

    reply

  • Chris Herbst

    29 June 2016 at 15:43 |
    Hi Jolene,
    Thank you for your comment. I will not be able to answer your question without knowing the details of your husband's situation for that particular tax year. It may be that a refund is due to him, but being held back for some reason. I would recommend you phone SARS to clarify the situation.

    reply

  • gillian christians

    04 July 2016 at 14:41 |
    I am currently doing my tax return. Despite a R25k out of pocket medical expense, my rebate is significantly lower than other years. Does it make a difference if my employer pays my medical aid premium?

    reply

    • Chris Herbst

      04 July 2016 at 17:07 |
      Hi Gillian,
      Thank you for your comment. It depends on a number of factors. Make sure that your IRP5 shows the correct code if your employer paid the medical aid premium. The section 6b credit for the out of pocket expense will only make a difference if your annual taxable income is below a certain amount - it may be that your annual income has increased since the previous year. A number of other factors can also play a role.

      reply

      • Ari

        05 July 2017 at 17:42 |
        Hi, thanks for good article. So My wife was pregnant and made many out of pocket payments not reflecting on Medical Aid IRP5. Which section are these totals completed in ?

        reply

        • Chris Herbst

          06 July 2017 at 09:48 |
          Hi Ari,
          It is a pleasure. Firstly you have to determine whether the specific expense was a qualifying expense see below as from SARS Guide:

          Examples of qualifying medical expenses:

           For services rendered and medicines supplied by a registered medical
          practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist,
          physiotherapist, chiropractor or orthopaedist for professional services rendered
          or medicines supplied to the person or any dependant of the person;
           To a nursing home or hospital or any duly registered or enrolled nurse, midwife
          or nursing assistant (or to any nursing agency in respect of the services of such
          a nurse, midwife or nursing assistant) in respect of the illness or confinement of
          the person or any dependant of the person
           For medicines prescribed by a registered medical practitioner and acquired from
          a pharmacist
           Medical expenses incurred and paid outside South Africa.

          Secondly you need to have proof that you incurred the expenses in the form of invoices from the relevant medical institution or pharmacy.

          Provided your expenses meet these requirements, you can enter it under the following section:

          ‘State any qualifying medical expenses paid by you not claimed from any
          medical scheme and not reflected on any medical scheme certificate (other than
          physical impairment or disability expenses)’

          with code 4034.

          reply

  • Michelle

    11 July 2016 at 13:53 |
    Hi.
    My parent is a dependent (and is unemployed). She is the main member of a medical aid of which I am the payer? Can i claim the tax credit ?

    reply

  • Chris Herbst

    11 July 2016 at 16:19 |
    Hi Michelle,
    Thank you for your comment. You will be able to claim the credit as your mother can be seen as your dependant and you have made the actual payment for the contribution. However please note that you will only be able to claim the R181 (for dependant) credit per month. If SARS queries your deduction you can submit your mother's medical aid certificate along with proof that you actually paid the contribution. Section 6 of the income tax act provides more details on this matter.

    reply

    • Chantal

      13 July 2016 at 12:03 |
      Thanks for this Chris. I have the same problem. I did my returns online and was flagged for audit. I have submitted an affidavit stating my parent is unemployed and I included bank statements showing the payments coming out of my bank account. Will let the forum know what the outcome was.

      reply

      • Chris Herbst

        13 July 2016 at 14:19 |
        Hi Chantal,
        It is a pleasure. Yes please provide feedback once you have the result.

        reply

        • Chantal

          25 July 2016 at 10:39 |
          Hi Chris,

          i just got feedback. Looks like they aren't paying me for my payments on my Mom's medical aid. My initial assessment came at -R29000. They took back around R22000, thus paying me approximately R7000. I did not get any response from them. Just the calculations.

          reply

          • Chris Herbst

            25 July 2016 at 18:07 |
            Hi Chantal,
            The max deduction you can get for your mothers medical aid is R181.00 x 12 = R2 172.00, since she is seen as a dependant. I am off course not sure regarding what else is involved with your tax return.

            reply

  • Anita

    18 July 2016 at 16:22 |
    Hi,
    If my husband is the main member on the medical aid, but I have paid out of pocket expenses for medical expenses, could I claim for those medical expenses, even though he is the main member of the medical aid?

    reply

    • Chris Herbst

      19 July 2016 at 11:17 |
      Hi Anita,
      Thank you for your comment. Yes you can claim for the out of pocket expenses on your tax return. It does not have to be on the main member's return.

      reply

  • Carl

    19 July 2016 at 07:41 |
    Here's an interesting question to which I hope someone can help: I am the main member on our medical aid, but have received no income for the past financial year. I've retired and our sole income is from my wife's investments (she submits tax returns). Can our medical aid contributions be submitted and claimed on my wife's tax return?

    reply

  • Chris Herbst

    19 July 2016 at 11:26 |
    Hi Carl,
    Thank you for your comment. My interpretation is that SARS focusses on whom paid the contribution to the medical aid. Thus if your wife paid the contribution she can claim the tax credit on her tax return although you are the main member. However if you made the payments she will not be able to claim - as she will not be able to submit her bank statements as proof to SARS if so required. Thus simple solution going forward would be that she pays the contributions from her account.

    reply

  • Richard Arthur Lapperts

    07 August 2016 at 22:22 |
    Hi This is Richard. Please help.I do not have any medical aid.My medical expenses was R29 343.00 for the year.Do I get anything back.
    Thanks

    reply

  • Seb

    17 August 2016 at 08:42 |
    HI Chris,

    As part of my medical aid contributions, a certain amount goes into my medical savings account. This was about R18000 for the tax year. I used all of the savings. Now I just get a tax credit for medical aid contributions. If I decide to not have a medical savings account as part of my medical aid plan, and pay for medical expenses from my own pocket (which is in effect what I am doing any way) I can then show the R18k as expenses from my own pocket and claim the 6B tax credit. Would that not be better?

    reply

    • Chris Herbst

      17 August 2016 at 13:04 |
      Hi Seb,
      Thank you for your comment. Yes that would be better, provided that you will be able to utilise the 6B credit (based on your taxable income) as elaborated on in article above.

      reply

  • Jennifer

    18 August 2016 at 19:02 |
    How do you claim tax credits on out of pocket expenses when you only have a hospital plan, not a medical aid?

    reply

    • Chris Herbst

      30 August 2016 at 12:06 |
      Hi Jennifer,
      Thank you for your comment. You will claim that in the same way as when you have a medical aid - by way of the section 6b deduction.

      reply

  • Antoinette Anderson

    29 August 2016 at 01:18 |
    Hi Chris,

    Wonder if you can help. I always do my parents tax returns for them. First part is that this is the first year that my dad is not paying tax and he is the main member of their medical aid, the deductions come off of his bank account. My parents are married in community of property and my dad is physically disabled, so I claimed the deductions from my mom's tax.
    Secondly my mom underwent cancer treatment this last tax year and incurred a lot of out of pocket expenses which I claimed from her tax also.
    SARS has disallowed the entire medical deduction after selecting her return for verification stating "declaration incorrect". If it is that she cannot claim the credit for their contributions I can accept that and I will tell them they should move the contribution to her bank account, but surely they should allow her out of pocket costs?
    Is it better to dispute the additional assessment or write a letter explaining the above?

    Thanks in advance,
    Antoinette

    reply

    • Chris Herbst

      30 August 2016 at 12:11 |
      Hi Antoinette,
      Thank you for your comment. With the information to my disposal I would agree that she should be able to deduct the medical costs. I would need to see SARS's objection and the other details to be able to provide a holistic opinion. You can dispute the additional assessment and attach your explanation as supporting documentation. Depending on the financial implications of the outcome it may be wise to consult a registered tax practitioner on the matter or to let them do the objection on your behalf.

      reply

  • Noel

    12 November 2016 at 11:05 |
    Hi Chris,
    If one resigns from a Medical Aid scheme, they refund the balance of the savings account and show it on the Tax Certificate. Are there any tax implications to the refund because part of one's contributions (in the form of tax credits) go to the savings. If so, where does one declare the refund on the tax return? Many thanks.

    reply

    • Chris Herbst

      14 November 2016 at 15:00 |
      Hi Noel,
      Thank you for your comment. There will be no tax on the balance refunded. You can view this as a normal savings account at a bank - where you pay tax on the interest that you earn, however when you withdraw your capital there is no tax involved as this if of capital nature.

      reply

  • Noel

    14 November 2016 at 19:42 |
    Hi Chris. Many thanks for the advice. I did not know how long a response would take, so today I phoned an old acquaintance who owns an accounting practice and he said that a savings account refund amounts to a refund of contributions, so the amount declared on the tax form as contributions needs to be reduced by the refunded amount. Please could you confirm this. Many thanks again. Kind regards.

    reply

    • Chris Herbst

      16 November 2016 at 12:01 |
      Hi Noel,
      Pleasure. It does make sense to reduce the relevant year's contributions by the amount refunded. However as mentioned the amount does not have to be declared separately since non taxable.

      reply

  • Lauren

    15 November 2016 at 11:17 |
    Hi do we still get a full tax credit back if we paying 50% medical and our employer is paying the other 50%. And the company pays both our portions over every month to medical aid. Is my medical tax credit then divided by myself and my company or all to me?

    reply

    • Chris Herbst

      16 November 2016 at 12:03 |
      Hi Lauren,
      Thank you for your comment. The 50% your employer is paying will be included as a fringe benefit on your IRP5. Thus you are allowed to deduct the full tax credit .

      reply

  • Lettie

    16 November 2016 at 11:58 |
    Hi

    How do I complete medical aid contribution over and above what is reflected on the IRP5. My husband works on a CTC basis, and his employer's contribution has not increased. With the result, he is actually paying far more to his medical aid than what his employer is showing on his IRP5. Can he even get a deduction on the additional medical aid contribution? (which amounts to almost R10k)

    reply

    • Chris Herbst

      16 November 2016 at 12:08 |
      Hi Lettie,
      Thank you for your comment. There is a field on your income tax return under the medical aid section where you can specify additional medical aid contributions - "State any medical aid contributions made not reflected on IRP5" (code 4040). However note that the restrictions on the additional section 6b credit will apply as detailed in my article above.

      reply

      • prishen

        16 November 2016 at 14:58 |
        hi ,i would like to know my return was submitted in july i received my return the end of july however my medical aid tax certificate was not submitted can i now go and submit it as a correction?

        reply

        • Chris Herbst

          18 November 2016 at 09:17 |
          Hi Prishen,
          Thank you for your comment. If you did not complete your medical aid details on your tax return (and it was not already on your irp5) then you can request the return for correction via e-filing. You can then go ahead and correct the return and file again.

          reply

  • Andy

    20 November 2016 at 19:11 |
    Nice site Christ. Thanks.
    In 2015 my 70 year old dad went to hospital for a nasty chest infection. He has no medical aid or hospital plan so I had to pay the R300 000 hospital bill out of my own after tax savings. Can I claim any of those hospital expenses on my own tax return?

    reply

    • Chris Herbst

      21 November 2016 at 09:58 |
      Hi Andy,
      Thank you for your comment and pleasure regarding the site. You will be able to claim the R300 000 as an additional medical expenses (section 6b deduction), since your parent is also accepted as a dependent. One of the definitions that SARS use for a dependant:

      "Any other member of a person’s family for whom he or she is liable for family care and support (e.g. mother, father, mother-in-law, father-in-law, brother, sister, grandparents, grandchildren.)"

      Please note that restrictions as detailed in article above will apply for the section 6b calculation.

      reply

  • Robyn Klaasen

    23 November 2016 at 18:36 |
    I am a dependent on my husband's medical aid and pay my own membership fees. Following the birth of our second child R17 000 was either not submitted to or covers by medical aid.

    How do I correctly claim for this under the medical deductions? It is not clear, and if I answer yes to being on medical aid, it calculates a R11 000 pay out, but if I say no (as in, I am not the main member) I get nothing - in fact I owe money.

    Also, if I submit the return without getting anything out, can I then contest th decision? What are the chances of me getting a reversal?

    I'd appreciate any help; no one seems to be able to assist me.

    Thank you

    reply

    • Chris Herbst

      24 November 2016 at 16:26 |
      Hi Robyn,
      Thank you for your comment. On the first page - answer yes to "Did you incur any medical expenditure". On the last page of your return (page with medical contribution details) answer no to first question - "were you a member of a medical scheme." Then in block 4020 ("state any medical expenses not recovered") fill in the expense that you have incurred (the R17 000). Please note that whether or not you receive a refund will depend on the restrictions of the section 6b credit as detailed in the article above.

      reply

      • Robyn Klaasen

        24 November 2016 at 22:17 |
        Thank you

        reply

  • Sue

    06 January 2017 at 11:37 |
    Hi Chris
    My husband is the main member and I am a beneficiary yet I pay out of my own pocket for my medicines. Can I claim on my tax form for these expenses. I have receipts for all.

    reply

    • Chris Herbst

      09 January 2017 at 13:00 |
      Hi Sue,
      Thank you for your comment. Yes you can claim for these expenses on your tax return, however subject to the section 6b formula and restrictions as detailed in article above.

      reply

  • Desire

    22 June 2017 at 11:05 |
    Hi,,
    Can one claim for Medical Insurance Payments (Not Medical aid) ?

    reply

    • Chris Herbst

      23 June 2017 at 16:17 |
      Hi Desire,
      Thank you for your comment. You can unfortunately not claim medical insurance payments as a tax deduction.

      reply

  • Heidi

    02 July 2017 at 15:08 |
    Hi, I am divorced yet I am pay my portion of medical contributions every month. This adds up to 13500k per annum. Can I claim this as a medical expense?

    reply

    • Chris Herbst

      02 July 2017 at 16:14 |
      Hi Heidi,
      Thank you for your comment.
      Do you pay the contribution to your ex partner and he pays that over to the medical aid (in other word you are a dependent on his medical aid or do you pay it directly to the medical aid?

      reply

  • Heidi

    02 July 2017 at 16:16 |
    thanks for responding! I pay it directly to him...

    reply

    • Chris Herbst

      02 July 2017 at 16:29 |
      Pleasure.

      It may be the case that your ex partner is claiming the tax deduction for both main member and first dependent (you) since he is in possession of the medical aid tax certificate. I am not 100% sure how to handel such a situation. I would advise that you phone SARS and ask for advice.

      It may be possible that you can claim the deduction and then if SARS queries your deduction you can submit your ex partner's medical aid certificate (if he can provide that to you) along with proof that you actually paid the contribution. Section 6 of the income tax act provides more details on this matter.

      Please post a comment on what SARS advised you.

      reply

      • Dane

        10 August 2017 at 11:28 |
        Hi I would like to know what SARS said to you in this case as I am in the same situation, I cancelled my company medical aid and move onto my partners, she is the main member her company pays over the contributions, I pay her back monthly for my contribution as well as for our 2 kids, I tried to claim this back, they asked for my partners med aid certificate which I provided, they also asked for bank statements for the tax year, which I supplied showing the monthly payments made to her. SARS told me because I am not a main member I cant claim this, as my partner is getting the tax benefit monthly already?

        reply

        • Chris Herbst

          10 August 2017 at 11:43 |
          Hi Dane,
          If you partner is
          1.) already getting the tax credit for 4 members deducted from her monthly paye OR
          2.) when completing her income tax return she fills in 4 members

          then you will not be allowed the deduction, since she is claiming the deduction on her side. However it does not matter on which side the tax credit is applied the nett effect is the same for you as a family.

          reply

          • Dane

            10 August 2017 at 11:56 |
            Noted, thanks for the response.

            reply

  • Ren

    04 July 2017 at 07:11 |
    Hi. Can I claim medical aid expenses for my parents. I pay the monthly contributions.

    reply

    • Chris Herbst

      04 July 2017 at 09:27 |
      Hi Ren,
      Thank you for your comment.
      Yes you can claim the deduction subject to section 6A and 6B. Your parents will be seen as dependents.

      Thus you will be able to claim R286 (2017 tax year) per month for first dependent (if you do not currently have other dependents on your medical aid) and R192 (2017 tax year) per month for each additional dependent. Any amount or out of pocket expenses will be subject to section 6B.

      If the medical aid certificate is in their name/s SARS you may need to submit their certificates and proof that you paid the contributions upon query from SARS.

      reply

      • Chantal Motilall

        07 July 2017 at 13:23 |
        Hello, I've recently completed my returns. I also pay my Mother's medical aid (it's on her name but I pay the debit orders).
        When creating the form (on e-filing), there is a section where you are asked if you contribute to a dependent's health care- where you are not the main member. Select that and when you are filling in your returns, you will be asked to fill in their medical aid details and the contributions every month. Hope this helps :)

        reply

        • Chris Herbst

          07 July 2017 at 18:47 |
          Hi Chantal,

          Thank you very much for bringing that under myself and the readers' attention. I have had a look and you are indeed correct, from the 2017 ITR guide from SARS:

          "From the 2017 year of assessment medical expenditure that you paid on behalf of immediate family members who are financially dependent on you for family care and support must be declared separately."

          You will need to answer yes at:

          "Did you pay any medical expenditure (including medical scheme contributions where you are not the principal/main member of the medical scheme) in respect of any immediate family member who is dependent on you for family care and support?"

          reply

  • Ingrid

    05 July 2017 at 13:37 |
    Hi
    I paid a portion of my medical aid and the company a portion. Both are reflecting on my IRP5. How do I declare this to SARS?
    Thank you.

    reply

    • Chris Herbst

      05 July 2017 at 13:43 |
      Hi Ingrid,
      You need not do anything - since it is reflecting on your IRP5 SARS will take that into account.

      reply

  • Tanya

    08 July 2017 at 11:31 |
    Hi Chris. I do my dad's taxes for him. He is now 68 years old and for the first time his income (from 3 annuities) falls below the tax bracket. Does that mean that he can no longer claim his medical aid rebates?

    reply

    • Chris Herbst

      08 July 2017 at 11:47 |
      Hi Tanya,
      The medical aid tax credit is a credit that can be utilized as a deduction against taxes paid. If there is no tax to utilize it against, then it will not result in a refund.

      However, very important to note here is that it may be that the different institutions paying out the annuity have deducted tax (PAYE) against the contributions before it being paid out to your father. You will be able to see this on the IRP5s issued by these institutions on your father's e-filing profile for the relevant tax year's ITR12. On the IRP5 under code 4102 you can determine whether or not they have deducted PAYE.

      In conclusion if the institutions have deducted PAYE then irrespective of whether your father is under the tax bracket or not, he can receive a refund based on the tax credits up to a maximum of taxes actually paid for that year. On a practical note, all that you have to do is still fill in his medical aid contribution details on the ITR12 before you file it, if a refund is possible based on the above you will see that on his assessment (ITA34).

      reply

      • Tanya Botes

        10 July 2017 at 07:56 |
        Thank you for your reply Chris. For interest sake.... If you fall just over the tax bracket, do you then only get a partial refund equal to the taxes you paid? For instance, people earning R7 410 pay tax of R3 pm according to the 2017 tax table. Does that mean that this person can only be refunded 12 x R3 maximum of his medical tax rebates?

        reply

        • Chris Herbst

          13 July 2017 at 20:03 |
          Hi Tanya,
          Pleasure. That is correct.

          reply

  • James

    08 July 2017 at 12:41 |
    Hi Chris

    My mother in law receives a monthly pension, which due to a section 14 transfer has now reduced by some two thousand rand per month. As it was, my wife and I were already paying for adult nappies and her monthly medication and extras, prior to this decrease in her pension contributions. She is in an old age home, my wife is not well -66, and it would not be possible for her to stay with us, as she is a high maintenance person. Is there any way that some form of tax relief can be requested on my tax returns?

    reply

    • Chris Herbst

      09 July 2017 at 10:05 |
      Hi James,
      On your income tax return at the first page, you will be able to answer yes to the following question:

      "Did you pay any medical expenditure (including medical scheme contributions where you are not the principal/main member of the medical scheme) in respect of any immediate family member who is dependent on you for family care and support?"

      You can then add up the following qualifying expenditure:

      Examples of qualifying medical expenses:

       For services rendered and medicines supplied by a registered medical
      practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist,
      physiotherapist, chiropractor or orthopaedist for professional services rendered
      or medicines supplied to the person or any dependant of the person;
       To a nursing home or hospital or any duly registered or enrolled nurse, midwife
      or nursing assistant (or to any nursing agency in respect of the services of such
      a nurse, midwife or nursing assistant) in respect of the illness or confinement of
      the person or any dependant of the person
       For medicines prescribed by a registered medical practitioner and acquired from
      a pharmacist
       Medical expenses incurred and paid outside South Africa.

      You can add together any qualifying expenditure of your own as well as the amounts you paid for dependents (such as your mother). You can enter this total under code 4034 at the medical section of your income tax return.

      Based on the restrictions of section 6B of the income tax act you may have a tax saving as a result of these expenses. This will reflect on your income tax assessment after you have filed. To learn more of section 6B you can read the blog entry at the top of this page.

      reply

  • celestine

    13 July 2017 at 17:37 |
    Hi Chris,

    I desperately need your help. I have been filing my tax returns every year but I didn't know that I could claim tax for my dads medical aid contributions. You see, my dad is a pensioner so I have been paying for his Discovery medical aid from 2014 because he cannot afford it with his pension. I have not claimed it back in my tax return in 2015 and 2016, however I do have all of the documentation such as the medical aid tax certificates and my bank statements.. my question is would I now be able to claim back for those 2yrs of contributions this year or will they now be forfeited because I already filed my returns for those years?

    reply

    • Chris Herbst

      13 July 2017 at 20:02 |
      Hi Celestine,
      You can indeed claim the medical credits for 2015 and 2016. You need to do a request for correction on e-filing. Go to your returns history, then click on "Open" for the relevant return, next click the "Request Correction" button. Your return will now be openend as a version 2 - you can now add the additional medical claim and file again.

      Please be aware that SARS will likely request verification since you are correcting a return - so you will have to submit all the supporting documentation that they request.

      Lastly you cannot do a request for correction if any of your returns are in an ongoing audit or for income tax if 3 years have passed.

      reply

  • Mario

    18 July 2017 at 10:26 |
    Hi Chris,

    I submitted my tax return and received an amount of R1500. I had out of pocket medical expenses to the amout of R13 000 which I captured on my return under the source code 4020.
    Do I qualify for a rebate or should I have captured the medical expenses under 4034. The amount of R13 000 appears on my medical certificate as own portion paid on claims.
    I didn't receive a refund from my medical aid as my fund was exhausted. Did I capture this medical expenses correctly?

    reply

    • Chris Herbst

      19 July 2017 at 07:59 |
      Hi Mario,
      Please refer to the blog entry at the top of this page regarding section 6B calculation.

      reply

  • LEANNE

    26 July 2017 at 10:30 |
    Hi

    When I withdraw from my medical aid scheme and they refund me the amount in my medical savings account, do I have to declare this on my tax return and where would I declare it?

    reply

    • Chris Herbst

      29 July 2017 at 10:20 |
      Hi Leanne,
      To the best of my knowledge the payout of your medical savings account will be capital of nature and thus you need not declare it separately as income. However you will need to reduce your current year contributions amount by the amount of the refund since you cannot take the amount refunded into account when section 6B is calculated. You will off course still receive your section 6A credits in full.

      reply

  • Chris Herbst

    29 July 2017 at 08:53 |
    Hi All,
    We have released an iOS app - TaxTree - to assist you in calculating your monthly and annual tax. It includes medical section 6A but at this stage not section 6B. You can get it at:
    https://itunes.apple.com/za/app/taxtree/id1263890353?mt=8

    Let us know if you found it helpful.

    reply

  • Alistair

    04 August 2017 at 08:14 |
    Hi
    If I get an IRP5 from my work do I have do I have to take care of the medical aid tax credit amount or will this already be captured. I am the main member on my medical aid and my wife is also a dependent, so 2 people.

    Also very confused about the new change in 2017 tax form. I understand we need to claim "out of pocket" medical expenses incurred by yourself under source code 4034, but nobody can tell me what is source code 4020 for, the code we used previously instead of 4034 for out of pocket expenses.

    reply

    • Chris Herbst

      04 August 2017 at 16:57 |
      Hi Alistair,
      You have to capture these details under the medical aid section of your income tax return. Specifically you have to add the contributions you and your employer made under code 4005. You also need to enter the number of dependents if this is not populated automatically.

      Source code 4020 is for the medical expenses that you submitted claims to the medical aid and they declined - this amount will reflect on your medical aid certificate.

      All other qualifying expenses you need to enter under code 4034 (this amount will not reflect on your medical aid certificate).

      Previously both of these amounts were entered together, it is now split between code 4020 and 4034.

      reply

  • Elzabe

    10 August 2017 at 12:11 |
    My medical aid did not report all my out of pocket expenses on the Medical Tax Certificate. For example a prescription where only 3 of the 4 medication was paid, the unpaid medication was not included in the tax certificate. Are there rules that guide the medical aid and where can I get it?

    reply

    • Chris Herbst

      10 August 2017 at 19:14 |
      Hi Elzabe,

      Any expenses that is not reflected on the certificate you can add under code 4034, provided that the expenses in question are qualifying medical expenses and you have retained proof.

      Source code 4020 is for the medical expenses that you submitted claims to the medical aid and they declined - this amount will reflect on your medical aid certificate.

      All other qualifying expenses you need to enter under code 4034 (this amount will not reflect on your medical aid certificate).

      reply

  • Emile

    29 August 2017 at 11:15 |
    Hi Chris,

    Would a basic employee wellness scheme, like Health4Me from Momentum, qualify for the MTC or any other tax type deductions?

    reply

    • Chris Herbst

      29 August 2017 at 16:50 |
      Hi Emile,
      You will not be able to include this under section 6A for medical credits as Health4me is not a medical scheme product.

      You may be able to include this under section 6B (additional qualifying medical expenses) subject to limitations. However, I would advise that you first confirm this with SARS.

      reply

  • Ilona

    29 August 2017 at 16:45 |
    We have a hospital plan, of which my husband is the main member. Can I claim the s6b medical credit for all our out-of-pocket medical expenses, as I receive the greater benefit because my taxable income is lower than my husband's? And am I allowed to claim for the bills that are in my husband's name but were paid for by me? What about bills that are in my name, but were paid for by my husband?

    reply

    • Chris Herbst

      29 August 2017 at 16:55 |
      Hi Ilona,
      Yes, you can claim the additional medical expenses provided that you paid for them. Thus the invoices can be in the name of you or your spouse, however it should have been paid by you.

      You may need to provide SARS with the relevant invoice and proof that you paid for it should they request that from you.

      reply

  • Piet

    30 August 2017 at 13:54 |
    Dear Chris, the 4 x [the tax credit that you received under section 6A] example above: is it the number of members; a fixed figure SARS thought out; or does it change for under and over 65's?

    reply

    • Chris Herbst

      31 August 2017 at 14:10 |
      Hi Piet,
      For persons 65 and over it is 3 x the tax credit and not 4 as for persons below 65. Also the credit ration (in final step) is 33.3% for people 65 and over and not 25% as for people below 65.

      reply

  • Zunaid Somodien

    31 August 2017 at 13:27 |
    Hi if company pays half medical and you pay half but paid from companies account can you claim 6A medical credit?

    reply

    • Chris Herbst

      31 August 2017 at 14:12 |
      Hi Zunaid,
      Yes you can, since the part the company pays is taxed as a fringe benefit.

      reply

  • Zunaid Somodien

    31 August 2017 at 13:31 |
    Hi if company pays half medical and you pay half but paid from companies account can you claim 6A medical credit?

    reply

  • Maria Marais

    12 September 2017 at 00:06 |
    Good day just want to find out. I am a housewife my husband is the sole provider.. I am the main member of the medical aid but he pays for everthing and contribute every month to the medical aid. So can he claim the medical expenses on his tax return, they want me to register for tax but I don't have a income so I don't want to and don't want another tax return to also struggle with...so I don't understand why he can't claim it on his returns. ..me and the two boys fall under him and the proof is there from his bank that he pays for it...can you mabe help please and just advice us

    reply

    • Chris Herbst

      12 September 2017 at 11:33 |
      Hi Maria,
      Your husband can claim the medical aid tax credit on his tax return since he is your spouse. If SARS request proof after submitting his tax return, he can submit your medical aid certificate along with his bank statement indicating he has paid the medical expenses.

      Section 6A(2)(a) of the income tax act states "The medical scheme fees tax credit applies in respect of fees paid by the person to--"

      Thus the emphasis is on paid and not membership. However the person/s that it was paid for should be dependents. You as his spouse and your children will qualify as dependents. Thus he can claim the tax credits on his tax return.

      reply

  • Maria Marais

    12 September 2017 at 12:05 |
    Thank you very much.

    reply

  • Chantal

    22 September 2017 at 12:08 |
    Good day

    Please could you help me with the following query. Our company gives about a R1100 medical aid contribution every month, but they dont show it under medical aid contributions, it gets added into our basic salary. What would be the reason for this. Is it not better for me as the employee to have it separately shown as a medical contribution, does it get taxed differently?

    Thanks
    Chantal

    reply

    • Chris Herbst

      22 September 2017 at 21:01 |
      Hi Chantel,
      I am not sure why they will do that - it is not correct. Their contribution should be reflected as a fringe benefit under code 3810.

      As long as you have your medical aid certificate and claim accordingly on your tax return it should have no tax effect.

      reply

      • Chantal

        23 September 2017 at 11:28 |
        Thanks Chris.
        So by them putting the medical aid into the basic salary couldn't it possibly send me into a higher tax bracket?

        So im being taxed on the R1100, but it's not in income. So if it's taxed as a fringe benefit, what does that mean the tax portion is less or what?

        Thanks

        reply

        • Chris Herbst

          23 September 2017 at 13:55 |
          Pleasure.
          No it will not, since a fringe benefit also increases taxable income by the same amount. The way they are doing it is not correct, but has no effect on your tax.

          You are taxed on the R1100 as fringe benefit or in your case as part of salary, because the company is paying the medical aid on your behalf. Tax is the same in either case.

          You do get the tax credit in both cases which will decrease your tax payable. Some companies deduct this credit on a monthly basis from your tax and others not. If they do not you will still be able to claim this when you complete your income tax return.

          reply

  • Craig Dennis

    09 November 2017 at 11:55 |
    In the case of a person who is medically disabled, pays no tax on their disability income after the switch over but contributes to a medical aid and has large out of pocket medical expenses, are we entitled to a tax refund? One of the larger medical aid says yes, I am curious if this is correct?

    reply

  • Chris Herbst

    10 November 2017 at 07:45 |
    Hi Craig,
    Unfortunately the medical aid refund is a credit based system. This means that you can only offset the credit against a tax liability. Thus if you do not have taxable income you will not be entitled to a refund.
    In this case you can only get a refund on taxes that was paid to over to SARS.

    If you have a family member that has a tax liability and is willing to pay the medical aid on your behalf, then it will open a tax deduction for them. However, in this case it should be them paying the medical aid.

    reply

    • Craig Dennis

      10 November 2017 at 08:55 |
      Yip that is exactly what I concluded for myself. Thanks for the feedback.

      reply

  • Suleman

    21 November 2017 at 16:09 |
    Hi Craig

    My parents recieve old age goverment grant.

    I have them on a medical aid scheme ou of my pocket.

    Is there any additional tax benefit for me since thay are both older than 65.

    reply

    • Chris Herbst

      22 November 2017 at 08:37 |
      Hi Suleman,
      You can claim the medical tax credits on your tax return. However, you will not receive any additional benefit based on their age.

      reply

  • Kristin

    22 November 2017 at 21:17 |
    Hi Chris

    My friend is not on a medical aid. Her mother who is dependant on my friend had a stroke years ago (bed ridden) and she pays for a full time care giver and also all medical expenses including adult nappies. Is she able to claim the care givers salary and nappies under physical impairment on her tax return? And then would she claim all the scripted medication under code 4034 including her own medical expenses as well?
    Thanks

    reply

    • Chris Herbst

      27 November 2017 at 08:27 |
      Hi Kristin,

      The section 6B of the income tax act defines a dependent as:

      a) a person's spouse
      b) a person's child and the child of his or her spouse
      c) any other member of a person's family in respect of whom he or she is liable for family care and support

      Thus the mother of your friend will be classified as a dependant under c).

      However, your friend will only be able to deduct medical expenses as normal under section 6B and not as physical impairment / disability expenses. Since the definition for eligibility to deduct under the disability section says:

      6B(3)(b):
      where the person, his or her spouse or his or her child is a person with a disability.

      Therefore your friend will be able to claim the additional qualifying medical expenses under section 6B as per my example in the blog above.

      Please note that if your friend is paying the medical expenditure and the mother is not on her medical aid as a dependant, your friend should answer yes on the income tax return to the question, did you pay any medical expenditure... in respect of an immediate family member.

      Then your friend should fill in her own medical expenditure under her own section and that of the dependant on the separate section that will open up based on the answer to the question above.

      reply

      • Louise Von Ludwig

        05 September 2018 at 12:12 |
        Hi Chris, I have a client who's father is not a member of a medical scheme and my client paid his expenses. The client is on his wife's medical aid. I created the form and said that he has medical expenditures for a family member. I used code 3043 for the amount, but after I calculate, the block is blank again. It also doesn't show as a deduction on the calculation. Can you help me please? Thank you!

        reply

  • Marina

    27 November 2017 at 10:44 |
    Good morning,
    We as the employer have been deducting the Medical Tax Credit from the monthly PAYE of some of our staff that we know are on medical aid. They pay their own medical aid contributions, the company does not contribute anything. Is this the correct way to do it? Or should we just deduct normal PAYE and let them handle the tax credit when they submit their tax return?

    reply

    • Chris Herbst

      28 November 2017 at 14:00 |
      Hi Marina,

      Both options are accepted. The typical way is to provide employees with the opportunity to provide their medical aid certificates and then you can reduce their monthly PAYE based on the relevant medical credits.

      It is off course more beneficial for the employees to deduct the medical credits on a monthly basis.

      reply

  • Wayne

    25 January 2018 at 22:03 |
    Good Day

    Could you perhaps advise on how one would calculate tax on the following scenario. Say someone had received a board from an employer based on a psychological condition, then some years later is compelled to return to and maintains a permanent job while still collecting the small amount for the grant. Is it a case of adding the 2 incomes together, as this appears to be rather high, and basically the disability diminishes to almost nothing. More complicated is that the person was unaware that they had to declare the pension as an additional income. So some years later this has resulted in a garnish order against this person's salary for SARS to recoup the backlog. The pension fund was also unaware of the person having returned to work later. Thus they failed to allow for a deduction for SARS. The pension fund has asked what amount they can deduct for taxes going forward, but the calculation remains a bit of a mystery.

    Kind Regards,
    Wayne

    reply

  • Wayne

    25 January 2018 at 22:07 |
    Hi,

    Just to clarify, the pension is a disability board from Transnet, not a government grant. Thank you.

    Regards,
    Wayne

    reply

    • Chris Herbst

      29 January 2018 at 09:20 |
      Hi Wayne,
      If the person is still receiving the grant / board, the two incomes should be added together since you are taxed on your gross income. Best would be to calculate the total tax the person would need to pay per relevant tax years (taking both incomes into account) and the divide the tax payable by twelve. Next deduct the PAYE that the person is paying on his/her monthly salary and the amount left is what the pension fund would need to deduct.

      Hope this helps.

      reply

      • Wayne

        31 January 2018 at 14:45 |
        Hi Chris,

        Thank you; I see where I was making a mistake in my calcs.

        Regards,
        Wayne

        reply

        • Chris Herbst

          03 February 2018 at 17:45 |
          Hi Wayne,
          Pleasure.

          reply

  • KIM

    31 January 2018 at 14:30 |
    Hi there,

    We work on a Cost to Company basis and the full Medical Aid contributions come off of my salary. The company does not contribute towards the medical aid.
    If I was to change medical aids and pay the contributions on a personal basis i.e. directly to another medical aid provider, would my tax benefits be different to what I am currently getting? The company pays the medical aid and then deducts the full amount from our salaries - is there any difference in my annual income tax rebates?

    reply

    • Chris Herbst

      03 February 2018 at 17:46 |
      Hi Kim,
      The tax benefit would be the same in either of the scenarios.

      reply

  • Sunil Thomas Ambat

    24 February 2018 at 15:57 |
    My wife is a dependent on my Medical Aid. I am undertaking daily trips together with her for medical treatment. The daily trips comprise of 220 kms per day + toll fees. Can I claim the fuel & toll fees as medical expenses on my tax return. If so what evidence should I enclose ?

    reply

    • Chris Herbst

      24 February 2018 at 21:04 |
      Hi Sunil,
      Unfortunately you will not be able to claim the travel expense as it is not a qualifying expense under section 6b.

      Qualifying expenses: Services rendered and medicines supplied by a registered medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopaedist

      reply

  • Z A Van Staden

    26 February 2018 at 17:26 |
    Good day Chris,
    Me and my wife are both pensioners. We both get our pension income. We are separately registered for paying tax. The problem is that we both contribute to the same medical scheme. With the medical scheme I am the main member and she is a dependant . Now can we split the amount on the medical tax certificate so that she claim her portion on her tax return and I claim the balance on my tax return. Is that posible.
    Regards Sagrys van Staden

    reply

  • Z A Van Staden

    26 February 2018 at 17:29 |
    Good day Chris,
    Me and my wife are both pensioners. We both get our pension income. We are separately registered for paying tax. The problem is that we both contribute to the same medical scheme. With the medical scheme I am the main member and she is a dependant . Now can we split the amount on the medical tax certificate so that she claim her portion on her tax return and I claim the balance on my tax return. Is that posible.
    Regards Sagrys van Staden

    reply

    • Chris Herbst

      01 March 2018 at 18:38 |
      Hi Sagrys,
      Since you are the main member it would be advisable to claim it on your tax return. If it makes a tax / cash difference for you to claim it separate it will be best to take her of your medical aid and let her be a main member on her own medical aid. This may off course result in more higher total medical aid payment which offset any tax saving.

      reply

  • Wayne

    09 March 2018 at 11:09 |
    Dear Chris, 2 questions please..

    a) Can any sec 6b amounts create an assessable loss, available for carry over in the following tax year?
    b) if I claim additional expenses on behalf of my dependant mother (over 65) - for her medical expenses paid by myself, why would I not be deemed to be over 65 and thus not subject to the limitations? Please advise . Many thanks

    reply

  • Chris Herbst

    09 March 2018 at 11:15 |
    Hi Wayne,
    a) No it cannot create an assessed loss
    b) You will not be deemed to be over 65 due to the current tax legislation

    reply

  • Hubre

    13 March 2018 at 14:24 |
    Hi Chris,

    My husband is the main member on the medical aid (I am a dependent) and it is not part of his CTC although the company he works for pay the contributions on his behalf. Will he be able to claim any part of the contributions back from SARS seeing that it is not a benefit offered by his employer?

    reply

    • Chris Herbst

      14 March 2018 at 16:11 |
      Hi Hubre,
      Yes, he will be able to claim the tax credits for himself and for you when he files his personal income tax return.

      reply

  • Z A Van Staden

    14 March 2018 at 17:23 |
    Thank you kindly for the information.

    reply

    • Chris Herbst

      14 March 2018 at 17:28 |
      Pleasure

      reply

  • Annerien

    27 March 2018 at 14:33 |
    Hi Chris,

    I have a question, my medical aid is paid over directly from my salary by my employer on my behalf, however, they do not contribute it is just deducted from my salary and paid over to the medical aid.
    Since this month, there is a deduction of R310.00 for Medical aid tax credit applied.
    According to my HR department, It was previously also deducted (apparantly they have to according to SARS regulations) it is just indicated on both my payslip and IRP5 now, where in the past it was only indicted it on the IRP5.

    Please can you explain how this will affect my tax claim and if my medical aid is not a fringe benefit and only paid via my employer is it acceptable for them to deduct it on my payslip

    Thank you :)

    reply

    • Chris Herbst

      27 March 2018 at 16:20 |
      Hi Annerien,
      The R310.00 should decrease your PAYE and thus increase your net pay (the cash they pay into your bank account). If the R310 decreases the net pay then there is most likely something wrong as it should be a credit in your favour.

      Let me know if this solves your query.

      reply

  • Amz Singh

    05 June 2018 at 09:10 |
    Please can you advise me if my mum is not on my medical aid but is financially dependent on me and I have incurred costs for an operation and hospitalization which I have paid cash, can I submit these expenses on my tax return ?

    reply

    • Chris Herbst

      08 June 2018 at 11:37 |
      Hi Amz,
      You can submit that as part of your section 6b claim since your mum is a dependant. However, please keep in mind that you have to comply to all the section 6b requirements. Please see the blog entry for some details on that.

      reply

  • RP Whitfield

    27 June 2018 at 15:02 |
    Good Day Chris

    Many thanks for your helpful blog...it contains loads of information!

    Would you perhaps have any insight into the tax implications of someone cashing out their Medical Savings Account?
    Would this be taxed at the same rate as cashing out a provident fund?

    Many Thanks

    reply

    • Chris Herbst

      02 July 2018 at 21:25 |
      Hi RP,
      It is a pleasure. Medical Savings being cashed out will not attract any tax. It will however affect your section 6B deduction (if any applicable) as you will have to reduced the current year medical contributions by the current year contribution to savings account that is now being cashed out.

      reply

  • Gordon

    01 July 2018 at 19:25 |
    Hi Chris, my husband was the main member of our medical aid for the 1st 6 months of the tax year and made full payments to the medical aid. He then went off his company's medical aid, and onto mine (both the same medical aid) but I was then the main member for the remaining 6 months and I received the medical aid tax benefit monthly. Can he still claim for his medical aid tax benefit as he never received it. It comeS up on his IRP5, but there doesn't seem to be any rebate? Thanks

    reply

  • Genna-Leigh Geldenhuys

    12 July 2018 at 15:13 |
    Good afternoon,

    The question I have is related to travelling claims : Can I claim for travel to and from work?
    And how would you go about claiming if you do not have a travel allowance? If you use your personal car for work is it possible to claim for this (I do claim for petrol from the company but what about mileage and wear and tear on my car?)
    Thank you.

    reply

    • Chris Herbst

      12 July 2018 at 21:25 |
      Hi Genna-Leigh,
      You are not allowed to claim for travel to and from work.

      reply

  • Marie Visagie

    13 July 2018 at 08:37 |
    I got a question regarding medical expenses and disability, My 9 jear old son has cerebral palsy since birth, I pay my medical aid out of my salary, Previous years I only claimed for medical expenses, I did not know i can claim more for Disability, This year I completed the form with the doctor and my refund was significant more, can I request a correction for previous years?

    reply

    • Chris Herbst

      13 July 2018 at 09:32 |
      Hi Marie,
      That is a good question. I am of the opinion you can do that for the past 3 years by way of doing a request for correction.

      You will need to check that the date of determination on the ITR-DD that the doctor completed is reflecting a date before the tax years you want to request for correction.

      Also since you are requesting the returns for correction, SARS will likely select the returns for verification and you will need to provide supporting documents.

      I would recommend that you engage a registered tax practitioner to assist you with this. You are also welcome to engage us for this, you can email us at info@chconsulting.co.za

      reply

  • Monique

    25 July 2018 at 15:27 |
    Good day Chris,

    I started working for the first time in June 2018. I paid for my own medical aid, but when I started working at the new company I had to move to their medical aid. I thus resigned from my medical aid and received a payout of R14 774,82 from the Medical Savings Account as my new Medical Aid option did not have a Savings Account. Do I need to declare this to SARS? I paid R12 092.00 to the medical aid from my own pocket before I started working and I won't be adding this to my medical contributions as I'm not sure how to adjust amounts on my IRP5.

    Would you kindly assist.

    reply

  • Chris Herbst

    28 July 2018 at 17:38 |
    Hi Monique,
    You need not declare the savings payout as income, since it is capital of nature. However since these savings were build up by your contributions to the medical aid, you will have to reduce the relevant tax year's contributions you declare on your ITR12 by amount refunded (since this will influence your section 6B calculation).

    reply

  • Peter Brand

    22 August 2018 at 07:28 |
    Good day Chris,
    I am a member of a medical aid.
    But I also have a brother who is in an old age home where I pay R7509 / month for him. Can I claim anything as an additional medical expense in respect of my \brother?
    I am over 75 years old

    reply

    • Chris Herbst

      07 September 2018 at 13:28 |
      Hi Peter,
      Unfortunately an old age home will not qualify as a medical expense. If you pay qualifying medical expenses on behalf of your brother you will indeed by able to claim this as your brother can be seen as one of your dependents.

      reply

  • Anthony Coles

    27 August 2018 at 18:02 |
    I live in Spain but I am still a tax resident in RSA. Iwas insured with a registered Spanish health insurer which has been accepted by SARS and contributions accepted as tax credits with copies of monthly debits. I have now changed insurer and an annual pre-payment is more beneficial but my debit in January will show payment for all of 2019. I can claim for January and February 2019 but will SARS accept pre-payments made in one tax year for cover in a future year?

    reply

    • Chris Herbst

      07 September 2018 at 13:32 |
      Hi Anthony,
      I would advise that you get a medical aid certificate from your insurer for the specific tax year in question and submit that to SARS. In the case where SARS also requires proof of actual payment you can off course substantiate with proof of Ja

      reply

  • Enrico Du Toit

    29 August 2018 at 11:40 |
    Hi Chris

    My mother received a large amount of money when she got divorced and invested in a bank account and an investment. She has earned interest and dividends that has created a tax liability. She is on her own medical aid and she also doesn't receive any IRP5's.

    My Question is that on SARS Efiling, she cannot add her medical aid contributions and expenses because this option disappears if she doesn't select "have you received an IRP5" even though she hasn't received one .

    How should I submit her tax return to keep the medical aid contributions as a deduction?

    reply

    • Chris Herbst

      07 September 2018 at 13:34 |
      Hi Enrico,
      You should answer yes to the question on the first page that asks whether you have made contributions to a medical aid. This question is independent from the IRP5 and the relevant fields will be added to claim the medical tax credits.

      reply

  • Corlene Pienaar

    31 August 2018 at 11:55 |
    Hi
    I have a quadriplegic friend. She earns a salary of R28 000 a month and was told that she can't claim medical expenses because se earns a salary. Is this true?

    reply

  • Louise

    05 September 2018 at 12:15 |
    Hi Chris, I have a client who's father is not a member of a medical scheme and my client paid his expenses. The client is on his wife's medical aid. I created the form and said that he has medical expenditures for a family member. I used code 3043 for the amount, but after I calculate, the block is blank again. It also doesn't show as a deduction on the calculation. Can you help me please? Thank you!

    reply

    • Chris Herbst

      07 September 2018 at 13:46 |
      Hi Louise,
      Are you referring to code 4034?

      reply

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