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Claiming Medical Expenses
- 23 July 2024
- Accounting
- The Tax Faculty Tax Specialist
This article is based on tax law for the year ending 28 February 2025.
1. The Problem / Facts
A 61-year old taxpayer only has health insurance, and is not a member of a registered medical scheme. Can the taxpayer claim any out-of-pocket medical expenses in the ITR12 return?
2. Applicable Law
ITA 58 of 1962, section 6B, 6B(3)(c)(ii)
3. Application of the Law to the Facts
According to the Income Tax Act 58 of 1962, specifically Section 6B, taxpayers are entitled to claim certain medical expenses as tax credits. However, the application differs depending on whether the taxpayer is a member of a registered medical scheme or not.
As the taxpayer is under 65 years and does not have membership with a registered medical scheme, section 6B(3)(c) of the Income Tax Act will apply. This section allows for a tax credit on qualifying medical expenses, but only to the extent that the aggregate of those expenses exceeds 7.5% of the taxpayer's taxable income.
It's important to note for tax purposes that while the taxpayer has medical insurance membership, this is not the same as membership with a registered medical scheme. Medical insurance premiums are generally not considered qualifying medical expenses under the Income Tax Act.
Regarding out-of-pocket medical expenses, these can potentially be claimed, but only if they meet the criteria for "qualifying medical expenses" as defined in Section 6B of the Act. These typically include:
- Services rendered and medicines supplied by a registered medical practitioner, dentist, optometrist, homoeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor, or orthopedist.
- Hospitalisation in a registered hospital or nursing home.
- Home nursing by a registered nurse, midwife, or nursing assistant.
- Medicines prescribed by a registered physician and acquired from a pharmacist.
The taxpayer is required to keep all relevant receipts and documentation to support these claims. For more detailed information, I recommend consulting the SARS website (www.sars.gov.za), specifically their guide on medical tax credits.