Author: Ilsa Groenewald, Associate Director, Tax, BDO Durban Tax expert offers guidance on SARS changes to tax claims for medical disabilities 06 August 2015 – Taxpayers who have a disability, or who have a spouse or child with a disability, should be aware of the claims that can be made when completing their 2015 income tax return. ‘The medical tax calculation has changed for the 2015 tax year’, said Ilsa Groenewald, Associate Director for tax at the Durban office of audit, advisory and tax firm, BDO South Africa.
Category: Medical Tax Credits
Wearing glasses in the eyes of SARS
Author: Mark Bechard (Iol) The fact that you wear glasses or contact lenses does not in itself mean you have a physical impairment and can claim tax relief for related medical expenses. The medical expense section of your South African Revenue Service (SARS) tax return has a field for “any physical impairment expenses not recovered from your medical scheme”.
How to calculate your medical tax credit
Author: Ingé Lamprecht (Moneyweb) New system less beneficial to higher income earners. JOHANNESBURG – In an effort to improve the fairness and equity of the tax system, tax deductions for medical aid contributions and expenses have gradually been replaced with a tax credit system over the last few years.
Which medical expenses are tax deductible?
Author: Ingé Lamprecht (Moneyweb) Deductions soon to be replaced by credits. JOHANNESBURG – The current tax filing season, which covers the 2014 tax year, marks the last time individuals will be able to claim a tax deduction for qualifying medical expenses.( From next year, this deduction will be replaced with a medical tax credit, similar to the one already applicable to medical aid contributions for taxpayers below the age of 65.
How to calculate your medical tax credit
Author: Ingé Lamprecht New system less beneficial to higher income earners. JOHANNESBURG – In an effort to improve the fairness and equity of the tax system, tax deductions for medical aid contributions and expenses have gradually been replaced with a tax credit system over the last few years.
End of medical tax deductions won’t hurt all pensioners
By Laura du Preez Taxpayers over the age of 65 who earn less than R400 000 a year may pay less tax as a result of the introduction of the medical tax credits system. Some pensioners are angrily accusing government of not caring about the plight of the elderly after it was highlighted in the Budget last week that over-65s will lose the tax deduction for medical scheme contributions and medical expenses in the 2014/15 tax year. But, depending on their contributions, expenses and family size, the scrapping of the tax deduction is bad news only for over-65s who earn more than about R400 000 a year, National Treasury says. Those who earn less should be better off.
Changes to tax treatment of medical expenses from 1 March – worked example
At present taxpayers aged under 65 years are on a hybrid system with regard to the income tax treatment of their medical expenses. While contributions to medical aids are subject to credit relief, medical expenses in excess of 7.5 % of taxable income are claimed as a deduction. On the other hand, taxpayers aged 65 years or older are on a deduction-only system. From 1 March 2014, all taxpayers regardless of age will be on a credit-only system. As is currently the case, contributions to medical aids or medical expenses by the taxpayer’s employer are a taxable fringe benefit in the hands of the employee but the amount of the fringe benefit is treated as if it was a contribution or expense paid by the employee for purposes of the conversion to credits referred to below.
New tax treatment of medical expenses
Johannesburg – At present taxpayers aged under 65 years are on a hybrid system with regard to the income tax treatment of their medical expenses. While contributions to medical aids are subject to credit relief, medical expenses in excess of 7.5 % of taxable income are claimed as a deduction. On the other hand, taxpayers aged 65 years or older are on a deduction-only system. From 1 March 2014, all taxpayers, regardless of age, will be on a credit-only system. David Warneke of BDO SA explains what this means for taxpayers. Currently contributions to medical aids or medical expenses by the taxpayer’s employer are a taxable fringe benefit in the hands of the employee.