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An elaboration on source codes 4040 and 4020 on the ITR12?

Posted 24 October 2013

My wife and I are members of a medical aid. I am the main member and she is a dependent. The cost of the monthly contributions are partly paid by my employer and partly by myself.

My wife however pays me monthly for our portion of the medical aid monthly expense after it has been deducted from my salary because she earns more than me, but doesn't receive a medical aid option from her work.

My wife also had out of pocket medical expenses amounting to R4 100. In assisting her with her tax return, if we insert her out of pocket medical expenses (source code 4020), the return calculator says a return of zero. If I input the amount she pays me monthly for medical aid contributions into source code 4040, she gets a return from SARS.

Is it correct to file her return this way?

TaxTim TaxTim says:
24 October 2013 at 16:00

You cannot include the portions she pays you as the medical aid is in your name, it does not make a difference who earns more as you will still be entitled to the same credit for medical aid contributions.

Regarding the Tax deductions for Out of Pocket expenses click the link to see a further explanation as to why there is no result on the calculator.

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