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Tax Advice Johannesburg

Tax Advice on the Medical Expenses Section – Professional Consultants in Johannesburg

One of the sections of the 2013/2014 income tax return which has caused a bit of confusion is that of medical expenses. Fortunately, our consultants have the experience, knowledge and qualifications to help with such difficult sections and to provide you with general and specific advice, whether you stay in Johannesburg or any other city or town in South Africa. We provide you with a brief explanation of the SARS requirements for completing the medical expenses section.

Tax Credit for Medical Expenses 2013/2014 Year of Assessment

According to SARS, tax relief is allowed on the tax payer’s contributions to a medical scheme for the mentioned tax year as follows:

  • Individuals under the age of 65 paying contributions to a medical scheme for themselves and their dependants can get a tax credit for their contributions. The total of the credit is determined by the number of dependants.
  • Individuals of 65 years and older paying contributions to medical aid for themselves and their dependants qualify for a tax deduction on the contributions made.

To determine how much credit or what deduction you qualify for, you can look at your IT3 (a) or IRP5 if you are employed, whereas if you pay your own contributions, you must enter the total on the return under the SARS code area of 4040. Note that if your employer has made the contributions, you should leave this section open. Complete the number of dependants registered on your scheme.

If you haven’t recovered expenses you paid from your medical scheme for the relevant tax period, you are entitled to a further deduction.  Only expenses that are more than the 7.5% of the taxable income qualify for tax deduction if you don’t have a disabled dependant and are under the age of 65 years. To ensure that SARS recognises the deductions, you need to complete the information required at code 4020.

However, if you fall in the above category, but have a disabled dependant or are in the 65 years and older age bracket, there is no limit on the expenses that qualify for tax deduction. Complete Code 4023 for the expenses not recovered regarding the disabled dependant.

Whether you own a business, work as an independent contractor or are permanently employed, you’ll benefit from our professional tax advice. With our offices located in Johannesburg, we offer a full range of tax and accounting services to individuals and companies across the country.

Contact us for professional tax advice on any income tax returns whether for the 2013/2014 or 2014/2015 tax year of assessment.

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