Can an individual deduct school fees for a special needs child from his income tax?
Important:
This answer is based on tax law for year ending 28 February 2017.
Answer:
We accept that you are referring to the “additional medical expenses tax credit” as section 18, that allowed for a deduction, was repealed and replaced by the section 6B rebate. The expenses must be “qualifying medical expenses” as defined in paragraph (c) of the definition thereof in section 6B(1) – essentially, it must be an expense prescribed by SARS and must be necessarily incurred by.
The SARS Guide on the Determination of Medical Tax Credits (Issue 8) states the following in this regard:
Expenditure in this category (the services category) “refers to expenditure incurred and paid by the taxpayer for services acquired by him or her which are required by a person with a physical impairment or disability so that he or she can function or perform daily activities.” The guide then gives the following examples:
“5. Rehabilitative therapy to teach a person to function or perform basic daily activities (for example, how to use a wheel chair, dressing, grooming etc).
6. Sign-language interpretation services used by a person with a hearing impairment.
7. Special education schools for learners with disabilities. Qualifying expenses will include –
• school assistant or classroom costs; and
• school fees limited to the amount in excess of the fees that would have been payable if the person attended the closest fee-paying public school not specialising in learners with special educational needs.
8. School not specialising in learners with special educational needs – limited to additional expenses incurred and paid as a result of the disability.
9. Tutoring services used by, and which are supplementary to the primary education of a person with a learning disability or impairment in intellectual or mental functions, and paid to someone in the business of providing such services that is not related to the person being tutored.
10. Driver services for a person with a disability.
11. Special training services for a person with a disability – this category includes expenditure incurred and paid for specialised training provided to a person with a disability for rehabilitation purposes. This will include training to cope with the disability, how to use an assistive device or aid etc.”