CATEGORIES
- (1) Negotiating Tax Debt and Payment Arrangements with SARS
- (24)Accounting
- (1)Accounting for Income Tax
- (2)Accounting for Income Tax
- (7)Administration of Estates
- (1)Application of tax rates, s6(2) rebates
- (1)Assessed losses
- (4)Audit, Reviews & Other Services
- (9)Blogs
- (8)Capital Gains Tax
- (1)Capital Gains Tax - Individuals Tax
- (1)Capital Gains Tax Implications of Trusts
- (2)Case study: Home office expense
- (1)Case study: Travel allowances
- (1)Company Formations
- (123)Corporate Tax
- (9)Customs and Excise
- (2)Deceased Estate
- (1)Deductions Pre-trade and prepaid expenses
- (1)Deferred tax assets and deferred tax on equity
- (1)Deregistration
- (2)Employer and Employee (PAYE and UIF Specific)
- (1)Estate Duty
- (1)Events / Webinars
- (9)Faculty News
- (2)Farming
- (152)Individuals Tax
- (1)Input - Customs Duty
- (3)Interest
- (13)International Tax
- (17)Legislation
- (1)Low interest rate loans and loan subsidies
- (1)Nature of the rights of beneficiaries
- (1)Notional input tax
- (9)Payroll
- (2)Practical Payroll
- (2)Provisional tax (Link with other Taxes)
- (2)SARS Dispute Resolution
- (4)SARS Issues
- (1)Salaried Employees
- (131)Tax Administration
- (2)Tax Administration Part 2B: Resolving Problems with SARS using the Tax Ombud
- (1)Tax Administration Part 3B Dispute Resolution - Objection and appeal
- (3)Tax Update
- (2)Tax implications of loans to trusts
- (1)Tax residence
- (1)Tax returns and payments
- (1)Transfer-Pricing
- (1)Trust Income / Gain Allocations
- (1)Trust types and income allocations
- (6)Trusts
- (70)VAT
- (3)VAT periods
- (1)Wear and tear allowances
- (1)Zero Rated
- (1)eFiling
- Show All
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.