Tax credits can provide some tax advantages for certain medical expenses.
A tax credit is a rebate that is not refundable.
This implies that a percentage of your qualifying costs, in this example, medical expenses, are transformed into a tax credit and subtracted from your total tax burden (the amount of tax that you must pay to SARS).
You can’t carry over any unused credits to the next tax year, and SARS will never give you a negative sum or a separate refund.
This means that you can’t claim the medical credit if you don’t earn money but do contribute a medical insurance.
Medical Expenses That Are Tax Deductible :
1. Medical Aid Contributions
This rebate is called the medical scheme fees tax credit by SARS. It refers to the payments paid by a taxpayer to a recognized medical program on behalf of themselves and their dependents.
2. Additional Medical Expenses
Additional Medical Expenses Tax Credit – this is a second tax reduction that considers the following two amounts :
- Overpayment of medical aid contributions.
- Eligible out-of-pocket medical expenses (those who have not been paid or claimed through medical aid).