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Medical Aid Tax Credits

Posted 7 February 2013

Just want to know how it works with the Medical Aid Tax Credits. My friend works for a private company and on his Pay Slip under credits he has Medical Aid Tax Credit and the amount that is credited to his PAYE. I however work for Dept Health, the Government and on our salary advice there has been no change. I see nothing on my salary, have never received more money since this system kicked in, and nobody can answer my question. When will I see this tax credit due to me? Somebody mentioned I might only benefit once I have completed the new tax form and this money will be due to me in this way? Please assist. Nobody has the answer.

TaxTim TaxTim says:
8 February 2013 at 16:05

There are no specific forms for the medical deduction/credit as all employers and even SARS themselves have not finalised the documents taking into account the changes to the medical aid credits. If the Health Department isn't taking the medical credit into account when calculating your PAYE then you will only be able to have this amount refunded when you complete your return at year end unfortunately.

The other reason could be that the deduction under the old system and the credit under the new system could have resulted in the same tax benefit and so you would not have really seen any difference.

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