Are medical expenses such as medical aid contributions paid during the year of assessment fully deductible for a person over the age of 65?
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
The Income Tax Act was amended a number of years ago and since 1 March 2014 no deduction is available to any taxpayer in respect of contributions to a medical scheme and medical expenses. It was replaced by two rebates, section 6A (the medical scheme fees tax credit) and section 6B (the additional medical expenses tax credit).
Both these rebates are available when the taxpayer paid the contributions or the ‘qualifying medical expenses’. The rebate is 33,3% of the ‘qualifying medical expenses’ and 33,3 % of so much of the amount of the fees paid by the person to a medical scheme as exceeds three times the amount of the medical scheme fees tax credit to which that person is entitled under section 6A(2)(b).