How to Get a SARS Refund by Daniel Baines

Author:Daniel Baines [Baines, Daniel]
Language: eng
Format: epub, pdf
Publisher: Penguin Random House South Africa
Published: 2021-08-31T22:00:00+00:00

In this example, the taxpayer will not be eligible for an additional medical tax credit, as the total (R12 064) is less than 7.5% of the taxable income (R15 000).

In this example, the taxpayer is entitled to receive an additional medical tax credit of R4 266; the taxpayer thus effectively recovered R4 266 of the R30 000 out-of-pocket expenses that were incurred. This amount is in addition to the normal medical credit of R3 984. Therefore, the total medical credit will be R8 250 (and their tax liability will be reduced by this amount).

It is evident that contributing to a qualifying medical aid can greatly reduce a taxpayer’s tax liability, particularly if they are over the age of 65 or are disabled. It is important that taxpayers keep a copy of the medical aid certificate from their medical aid provider as well as invoices of additional expenses in case SARS requests these documents during an audit or verification. If the documentation is not available, these expenses will be disallowed.

If you are unsure whether you are entitled to an additional medical expenses credit, it is always advisable to include these medical expenses on your ITR12. SARS will do the necessary calculations automatically upon submission of your return.

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