If you contribute to a medical aid each month, you may be aware that you’re entitled to a tax credit – but how do you go about claiming it?
What can you claim back?
The SARS regulations on medical tax credits change from time to time, and at the moment you are allowed to claim back money you have spent on the following expenses:
- Medical aid contributions
- Medical expenses that aren’t covered by your medical aid
- Hospital bills, optometrists fees, and dentist’s fees
How much can you claim?
As you might expect, SARS has certain limits on how much you’ll be able to claim for every type of medical expense. At the moment, you can claim up to:
- R242 per month for your own medical aid contribution
- R242 for the first dependant on your medical aid scheme
- R162 per month for each extra dependant on your scheme
These amounts apply to medical aid contributions – in other words, the premium you pay to your medical aid each month. This could be your contribution to a staff medical aid (where your employer pays part of the total premium) or a medical aid scheme you took out in your private capacity.
Tax credits for out-of-pocket expenses
No matter how comprehensive your medical aid cover is, you’ll always have some medical expenses that you pay for using your own money.
SARS gives you a chance to claim some of these out-of-pocket expenses back. Here are some examples of the expenses SARS will allow you to claim:
- Hospitalisation at a registered hospital or nursing home
- Prescribed medication bought at a pharmacy
- Treatment received from most medical professionals – including doctors, dentists, optometrists, orthodontists, chiropractors, physiotherapists, homeopaths and others.
- Home nursing – by a registered nurse
- Medical expenses of the above types which were paid for overseas during a trip
If you’re over 65…
Good news for retired people is that citizens over 65 are entitled to claim the full value of their medical aid contributions and medical expenses.
This means that the majority of retired people can expect to receive the full value of their medical expenses back from SARS. The same applies to disabled people under 65, whose health tax credits aren’t capped.
If you’re in any doubt as to how much you can claim in medical tax credits, speak to your financial advisor today.