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Medical Scheme Fees Tax Credit

Posted 4 August 2015 under Tax Questions


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Jami says:
3 August 2015 at 16:30

Good day,

I just want to make sure about the Medical Scheme Fees Tax Credit, source code 4116. My husband joined my medical scheme from July 2014, thus every month I pay for myself plus one dependent. In terms of section 6A (Medical scheme contributions tax credit), do I have a right to R257 tax credit per month for myself and for my husband? (Thus: (R257*12)myself + (R257*8)first dependent). On my completed IRP 5,from my previous employer, they only took myself into account for the medical scheme tax credit and not my dependent as well. I then changed it, I thought it was a mistake from their side. I submitted my ITR12 on e-filing, but now due to the changes I've made myself, I have been selected for audit. I did send them all the information and copies required and changed the medical tax credit back to only 1 dependent as it was on the original IRP5. I am now waiting for response from them. . . I would really appreciate it if you can please explain to my why the medical tax credit should be for just myself and not for my dependent as well?
Thanking you in advance :)
p. S great website

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TaxTimTaxTim says:
3 August 2015 at 16:36

Your employer should have made the correction if they knew about the situation. If you submitted all your documents to SARS they will also make the necessary correction and take into account the correct number of members. Let us know when the next assessment arrives.


Jami says:
3 August 2015 at 17:13

Awesome thanks so much! So they were actually wrong to only put my credit in? The SARS helpline lady told me I was not suppose to change anything on my ITR12 and that my refund is going to reduce now. However I am not agreeing with her 100% because I don't see why it should decrease if all my information are correct and supported by documents. (And yes my previous employer did know about it, the medical scheme were through them on their payroll)

But thanks anyway I will let u know should I hear from them back and there are problems.

Also my ITA 34 is currently showing a R0 amount , but on my calculation Showing a refund?! Is this because of the audit now, will they update the ITA34 after the audit.

Thanks

Sent from my iPhone


TaxTimTaxTim says:
4 August 2015 at 16:22

They should send you an updated ITA34, let us know when it arrives.


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