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How do you calculate Med/Scheme tax credit and Additional medical expenses

Posted 27 November 2014

I am 81 and married and I see that the way one shows medical expenses seems to have become complicated. Am I correct in working it out as follows?
My Medical scheme fees for the year are R22 896.00 and additional medical expenses R8335.
In the line ?%u20AC%u0153Medical scheme fees tax credit?%u20AC? I enter R6168 (R257x2x12).
Excess Medical scheme fees are R4392 (R22896-3xR6168)
In the line ?%u20AC%u0153Additional medical expenses?%u20AC? I enter R4342.33 (R4392 R8335)/3
Am I correct in my interpretation?

TaxTim TaxTim says:
27 November 2014 at 19:20

Are you trying to complete a provisional tax return (IRP6)?

Dudley says:
28 November 2014 at 7:02

I used the figures in my question when I completed the 1st Provisional tax IRP6.
I just need confirmation that I have interpretted the new method of showing medical expenses as it seems more favourable than the previous method.in that the result is deducted from Tax payable.
Previously, medical expenses reduced the taxable income.

TaxTim TaxTim says:
28 November 2014 at 8:18

Your interpretation is correct. All expenses are now a credit and no longer a deduction.

Dudley says:
28 November 2014 at 9:29

Thank you for your reply.

TaxTim TaxTim says:
28 November 2014 at 13:24

Only a pleasure!

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