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Medical Insurance - Do I put that on my tax return?

Posted 14 June 2016 under Tax Questions



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Michelle says:
14 June 2016 at 13:49

I have been submitting my tax returns for many years and use to include my Medical (which is a hospital plan with Liberty but not viewed as a medical aid, which I found out in 2015). I contribute to this on a monthly basis and pay my own medical bills i. E. Doctors visits, dentists, optometrists, etc. Only medical procedures in a hospital is covered by my hospital plan. As it is not tax deductible seeing as it is not a medical aid, do I now even bother to mention it on my tax return although the only reason I do submit is to claim for medical costs that come out of my own pocket such as doctors visits, medications, dentists, etc.

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TaxTimTaxTim says:
14 June 2016 at 13:59

It is tax deductible, a hospital plan is not a medical insurance plan and will still be deductible as you had before. Who told you it was not tax deductible?


Michelle says:
14 June 2016 at 14:12

I was advised this directly by Liberty? In general, this specific policy/hospital plan can not be obtained in SA anymore apparently (I have had it since 2004) and it ceases in 2041. It is called 'Medical Lifestyle'. The below was advised by Liberty Life last year:

"There are no tax certificates issued for the above-mentioned policy as there are no Tax implications. As per SARS Please note that contributions towards a Hospital Plan is not tax deductible in terms of Section 18(1) of the Income Tax Act, as it does not form part of a Medical Scheme, as defined in Section 1 of the Medical Scheme Act, 1998 (Act No 131 of 1998).


TaxTimTaxTim says:
14 June 2016 at 14:27

We went to check on this and indeed this plan is only medical insurance and not a hospital plan as common known, Hospital plans are still allowed to be claimed, but not medical insurance unfortunately. They should have informed you of the difference.


Michelle says:
14 June 2016 at 14:43

Thank you for clarifying. In this regard, can I still submit my tax return to claim under Deductions: 'State any medical expenses not recovered from your medical scheme (other than physical impairment or disability expense (Code 4020)? So medical expenses from my own pocket i.e. dentists, dr's visits, etc. or do I now stand to not benefit from claiming at all?


TaxTimTaxTim says:
14 June 2016 at 14:45

Yes, you would still include this amount there for destructibility purposes. Next filing season make use of TaxTim for all your tax and filing needs. We are SARS integrated and submit directly for you.


Michelle says:
14 June 2016 at 14:54

Thanks. I have already registered for this upcoming tax season with TaxTim. Do I need to wait until tax season opens 01 July 2016, until I start the process with TaxTim?


TaxTimTaxTim says:
14 June 2016 at 14:59

It would be best to wait until 1 July to begin the process as we will be able to pull your IPR5 from SARS as that point to assist you in filing.


Michelle says:
14 June 2016 at 15:01

Excellent, thank you!


TaxTimTaxTim says:
14 June 2016 at 15:02

Glad we could assist!


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