Medical expenses can take up a large chunk of your income each year. The good news is, certain medical expenses can provide you with some tax relief.
Qualifying medical expenses are any amounts that were paid by you, as the taxpayer, during the year of assessment for the following:
• Medical aid contributions (and excess medical aid contributions) which are the fees paid by a taxpayer to a registered medical scheme for you (as the taxpayer) and your dependants.
• Professional services rendered and medicines supplied by a registered medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopaedist to you or any of your dependants.
• Nursing homes or hospitals, 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.
• Medicines prescribed by a registered medical practitioner and acquired from a pharmacist.
• Medical expenses incurred and paid outside South Africa.
It’s important to note that “over the counter” medicines – such as cough syrups, headache tablets or vitamins don’t qualify as medical expenses – unless specifically prescribed by a registered medical practitioner and acquired from a pharmacist. Why? In 2012, SARS introduced the Medical Aid Tax Credit, in order to even out the tax benefit regardless of income levels.
Take the guesswork out of tax this year. Visit TaxTim for more helpful information, calculators and online assistance with submitting your tax return – free for Multiply members.