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Can both employer & employee med aid contribution be used in calculating Add Medical tax credit

Posted 9 September 2014 under Tax Questions



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I need to calculate the Additional Medical Expenses Tax credit to be included onto my Provisional Tax Form IRP6 for 01-2015. Half of my medical Contribution is paid by my employer directly to the medical aid and I pay the other half. Must I use both be added together to include in the calculation? Furthermore I have no excess medical fees/expenses. Another problem is that my 7.5% of my taxable income is greater then the medical value subtotal. This results in a negative value for the Additional Medical Expenses Tax credit. If I use both employer and employee medical aid contributions, it works out to a positive value. If I only use my contribution in the calculation, then because I do not have large any extra medical costs, I cannot calculate this properly. I hope I ma making sense

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TaxTimTaxTim says:
9 September 2014 at 9:32

There will be no extra medical credit then and you can put 0 for your extra amount. For the normal credit it would be R257 per month per member for the first two member regardless of who pays it.


STIR says:
9 September 2014 at 20:27

Thanks, I had to add a couple of zeros in the Additional medical Expenses Tax Credit line before it was accepted when submitting my provisional tax online.

I am still unsure about whether to use both contributions in the Additional medical Expenses Tax Credit calculation should I be required to fill this in future returns. The formula requires the annual contribution (mine only or mine + employer's) less four times the annual normal credit.... etc

I am clear about the normal credit calculations - in that it does not rely on any medical contributions.


TaxTimTaxTim says:
10 September 2014 at 0:04

The additional credit relates to 4 x the contribution in total, it doesn't matter who pays for it, the law speaks of the contribution and even if the employer settles this, that amount that they pay is still taxable in your hands as a fringe benefit so you would be paying it anyway.


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