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Tax claim for medical expenses

Posted 21 November 2012 under Tax Q&A


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Hi Tim

I had to get two hearing aids but the medical aid only paid for one. I was told that I can claim the cost for the other one from tax but if I use the e-filing calculator it seems as if I will only get R5000 back of the R15000 I paid. Is that possible or how do I claim the full amount?

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TaxTim TaxTim says:
21 November 2012 at 11:40

Unfortunately SARS only allows a deduction for medical expenditure not covered by your medical aid if the amount is above a certain threshold. SARS takes your taxable income and multiplies it by 7.5% and then any amount over that can be claimed as a deduction. So in your case depending on what your taxable income is, you are only allowed a portion of the medical aid claim.

Ant says:
21 November 2012 at 21:32

Hi Tim

Thanks for the reply. I just want to make sure - I was told that I can claim all my medical expenses that was not paid by the medical aid plus the amount on my IRP5 under Medical Aid contributions (4005). Is that true as I usually only fill in payments made by myself?

Thanks, Ant

TaxTim TaxTim says:
21 November 2012 at 22:46

SARS looks at your IRP5 and pulls out the allowable deduction for the contribution. Then takes the difference and adds it to the medical expenditure that you make and works out the amount of the 7.5% threshold I mentioned above.

You would not need insert anything on your tax return next to source code 4040 on your tax return as this will come from your IRP5. You would include all your other medical expenditure next to source code 4020 on your tax return. SARS will then take all this information and calculate the allowable deduction.

So from what you have said, you have done this correctly. If your employer has included the amount paid to the scheme in your IRP5 then no need to put it on your return.

So in effect you are claiming all your expenses, but only a portion will be allowed as a deduction.

Ant says:
21 November 2012 at 22:53

Thanks Tim

TaxTim TaxTim says:
21 November 2012 at 23:07

Only a pleasure:)


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