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Medical Deductions section is confusing me!



I've gone through the entire process and am filling in the e-filing form. I'm stuck on the Medical Deductions section. I've filled in what TaxTim suggested, but the e-filing calculator is ignoring the amount at code 4020.

The "Did you incur any medical expenditure?" is ticked "No". But if I change it to Yes then it expects that I have paid to a medical aid and wants a "0" if my "employer" paid the total.

My specific scenario is a little different. My wife pays the medical aid each month and claims that on her own tax return. However, I paid certain extra-ordinary medical expenses not covered by the medical aid amounting to over R5000 during the birth of our twins in November 2011. I wish to claim those medical expenses. I'm worried that by saying an "employer" paid the medical aid will adversely affect the tax calculation.

Any suggestions as to how I can fill this section in and get my medical deduction?

TaxTim TaxTim says:
14 August 2012 at 1:19

The reason that you aren't seeing the medical deduction shown on the eFiling calculator is probably because the medical deduction threshold hasn't been exceeded. SARS only allows non-medical aid contribution deductions in excess of 7.5% of taxable income.

So for example if you have income of R100 000 and your out-of-pocket medical expenditure is R10 000 then you would only be allowed a deduction of R10 000 - R7 500 (7.5% of R100 000) = R2 500.

Unfortunately this is quite limiting and a lot of taxpayers find themselves quite heavily out of pocket, but this is what is allowed. You shouldn't change the employer medical aid question as this may then lead to SARS asking for proof of medical aid contributions which obviously isn't the case.

I wish I had better news for you regarding the medical expenses.

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