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MEDICAL TAX CREDIT REFLECTED ON IRP5/IT3(a)

Posted 9 October 2015 under Tax Questions



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Robert says:
8 October 2015 at 19:21

1. I am retired and a deduction for my Medical Aid Contribution is made from my monthly pension. My Tax Certificate displays a basic Tax Credit (R257 x 2 x 12) which does not include the extra Tax Credit for claims submitted to, but not paid by, my Medical Aid Fund. My neighbour, on the other hand, who also has a deduction for his Medical Aid Contribution from his monthly pension, received his Tax Certificate which reflects a Tax Credit taking into account a basic Tax Credit (R257 x 2 x 12) as well as his claims submitted but not paid by his Medical Aid Fund. Which employer is providing the correct Tax Credit figure on their respective Tax Certificates, or is there no hard and fast rule here?

2. A Medical Aid Fund can only take into account known expenditure if the expenditure is submitted to them, so I presume that such qualifying expenses would have to be taken into account by the taxpayer who would have to recalculate his Tax Credit and have proof of the expenses for possible audit by SARS.

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TaxTimTaxTim says:
9 October 2015 at 7:11

It is unusual for the employer to deduct the additional credit, but it does happen in the case of retired employees. You can ask them to do this for you.

There is no need for you to recalculate it, submit those additional expenses to SARS and they will do the calculation and refund if there is any amount applicable.


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