It seems like SARS puts tax
filing on its head every single year! Don't let the new confusion around 2013's medical tax
deductions get the best of you, here's how to come out on top…
Tax Returns Made Simple
(2013 edition) has this to say on the matter:
'Previously your medical expenses were allowed to reduce your taxable income through a SARS medical deduction. From the 2013 tax
year, SARS has changed this. There are now two elements to reducing your tax
through medical expenses – a medical tax
credit and a medical deduction.' (Page 81)
What's the medical tax credit?
This is a monthly tax
credit that SARS deducts from your payable tax
every month. For 2013, the taxpayer is allowed R230 medical tax
credit, R230 for the first dependent and R154 for every additional dependent.
Warning: The medical tax
credit doesn't apply to you if you're over 65, because 65+ people get all their medical expenses as a deduction.
Can you still make medical deductions?
Yes, absolutely. The medical deductions include medical aid contributions that exceed 4x the medical tax
credits, and medical expenses your medical aid didn't cover.
While the new SARS medical tax
credit system may be confusing at first, it will actually benefit you as long as you use it correctly. Happy tax