Claiming Medical Aid Contributions and Additional Medical Expenses for a Dependant

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Claiming Medical Aid Contributions and Additional Medical Expenses for a Dependant

• 17 March 2025
• Individuals Tax
• The Tax Faculty Tax Specialist

Question:

My 84-year-old mother's medical aid subscription, costing R3071 monthly, is in her name and directly debited from her bank account. I transfer R3071 from my bank account to hers to cover this expense. I also pay for all of her additional medical expenses. Am I entitled to claim any medical tax credits or deductions on my personal income tax return for these contributions and additional medical expenses? If so, what specific claims am I eligible to make?

Answer:

1. The Problem / Facts

Am I able to claim medical aid contributions and additional medical expenses I pay for my mother (age 84) on my personal income tax return? If so, what qualifies for the claim under the Income Tax Act?

2. Applicable Law

• Claiming Medical Aid Contributions
  • Relevant Law: Section 6B(3)(b) of the Income Tax Act 58 of 1962.
  • Medical aid contributions made for a dependant (e.g., a parent) can be included in the Medical Scheme Fees Tax Credit (MTC) if the contributor provides financial support for the dependant.
• Claiming Additional Medical Expenses
  • Relevant Law: Section 6B(1) and 6B(3)(c) of the Income Tax Act 58 of 1962.
  • Expenses for "qualifying medical expenses" incurred for a "dependent" may qualify for the Additional Medical Expenses Tax Credit (AMTC). Eligibility depends on whether the taxpayer supports the dependent financially and covers these expenses directly.
• Definition of 'Dependent'
  • Relevant Law: Section 6B(1) of the Income Tax Act and the terms set in the Medical Schemes Act 131 of 1998.
  • A parent qualifies as a dependant if financially dependent on the taxpayer and included as such on the taxpayer’s medical aid.

3. Application of the Law to the Facts

You may claim deductions on your personal income tax return for your mother’s medical aid contributions and additional medical expenses, provided specific conditions are met:

• Claiming Medical Aid Contributions (R3071):
  • The medical aid is in your mother’s name. However, you transfer the R3071 to her account to cover the contribution. Therefore, you must prove her financial dependency on you. If the criteria are satisfied (i.e., your mother is financially dependent on you), the contribution qualifies for the Medical Scheme Fees Tax Credit (MTC) under Section 6B(3)(b) of the Income Tax Act 58 of 1962.
• Claiming Additional Medical Expenses:
  • Payments you make directly for additional medical expenses (e.g., medical treatments not covered by medical aid) may qualify for the Additional Medical Expenses Tax Credit (AMTC) under Section 6B(3)(c), provided they are considered "qualifying medical expenses" and you can provide proof of payment (e.g., receipts).
• Dependency Requirement:
  • Your mother qualifies as a dependant under Section 6B if you financially support her, and this can be demonstrated (e.g., via bank transfers or other records showing regular financial contributions).
• Documentation Needed:
  • Proof of the medical aid contributions transferred to your mother’s account (e.g., bank statements).
  • Invoices and receipts for additional medical expenses you’ve paid.
  • Evidence of her financial dependency on you (e.g., her income details or affidavits if required by SARS).

On eFiling, there are form questions that will assist with the claim.

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