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Tax and overtime - refunds?

Posted 15 July 2013 under Tax Questions



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I would like you to explain to me why people who work overtime get so little refunds. Ever since I've worked in 2008, I've been getting 24c - 27c as my returns. I have a med aid and my tax certificate yearly shows thay I've paid more than 3 000 out of my pocket. If you can just explain as to why's is it like that, is there something I'm soing wrong?

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TaxTimTaxTim says:
15 July 2013 at 13:21

It isn't anything you are doing wrong. Does your medical aid come out of your salary directly, so your employer pays it over on your behalf? If this is the case then your tax benefit from your medical aid is already taken into account when your employer pays over your PAYE each month.

You would only be due a refund if you overpaid your taxes, so if the PAYE was more than the actual tax owed at the end of the year. Your employer would do a proper calculation to determine the tax owing each month and pay it over. Unless they are unaware of some other deduction you may have, such as Retirement Annuity or a donation perhaps then the tax paid and owing would be the same and no refund would actually be due.

To answer your other medical question, have a look at this blog post -

Tax deductions for Out of Pocket expenses


Kaytee says:
15 July 2013 at 14:36

My employer pays some percentage of my medical aid. If I'm not wrong they pay 45 % and I pay 55% of my medical aid. I also have retirement annuity.


TaxTimTaxTim says:
15 July 2013 at 16:27

If the medical aid comes out of your salary or even if the employer pays part of it this will all get taken into account when your PAYE is calculated. Does your RA also come out of your salary or is this paid for separately?


Kaytee says:
15 July 2013 at 17:01

The RA is debited from my bank account.


TaxTimTaxTim says:
15 July 2013 at 17:06

Then you should be receiving a refund as your employer is unaware of this. You could use the TaxTim dialogue to answer the questions and receive a copy of what your tax return should look like. On your eFiling you should include the amount paid for the RA under the retirement section of the ITR12.


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