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Medical Aid Tax Credit - source code 4008

Posted 17 July 2013 under Tax Questions



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Hi

My Taxable Income is R 322 058. Through the year my medical Aid contributions were R 13 024 and out of pocket was R 11 359.19. I just wanted to check that I shouldn't be getting a rebate on 4008.


The calculation I'm doing is: Contributions and out of pocket (R24 383) - Tax Credit R246 * 12 * 4 (R 11 616) = R 12 767. This is less than 7.5 % of my income ~R24 000 therefor that's the reason why the 4008 allowable deduction is R 0?

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TaxTimTaxTim says:
17 July 2013 at 15:44

Your out of pocket is actually only the non-medical aid expenses so it would just be the R11 359.19. The remainder of your medical credit, which for 2013, is R13024 - (230*4*12). is added to the R11359 and then your 7.5% threshold is calculated. So that does seem correct that you are not receiving a 4008 deduction.

Tax deductions for Out of Pocket expenses


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