Section 18 deduction for maintenance paid by taxpayer towards her disabled child
24 October 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: My client enquired whether we can
claim as a deduction the maintenance she paid towards her adult child who is
bipolar, i.e she stays in her flat and she pays all the levies, rates and taxes
and pay her a monthly amount. Her child is receiving a disability grant and is
viewpoint is that all medical expenses paid on her behalf will be deductible as
a medical expenses (the taxpayer is over the age of 65 years). However, the
amount paid for her upkeep will not be deductible.
kind of proof does SARS require in order to claim medical expenses paid on
behalf of one’s daughter? My client has no medical aid.
A: In terms of the income Tax Act ‘qualifying medical expenses’ means any
expenditure that is prescribed by the Commissioner (other than expenditure
recoverable by a person or his or her spouse) necessarily incurred and paid by
the person during the year of assessment in consequence of any physical
impairment or disability suffered by the person or any dependant of the
The emphasis is on expenses ‘prescribed
by’ SARS. In Annexure B – The prescribed list of expenditure SARS states
as follows (under nature of expense: personal attendant care expenses):
Actual living-in expenses: Electricity,
food and water incurred and paid by the taxpayer for the care attendant. SARS
would generally allow the living-in expenses incurred and paid by the taxpayer,
if the aggregate amount of such expenses does not exceed 10% of the annual
salary payable to a care attendant up to a limit of 50% of the annual domestic
worker minimum wage under Area A of the Sectoral Determination 7 for Domestic
Workers (currently R18 076.08).
spouse, parent or child is excluded as a care attendant. For example, if the
wife is a person with a disability and the husband looks after her, the amount
paid to the husband by the wife will not qualify for a deduction.
- Any living-in expenses for a person with
a disability and any other living-in expenses other than food, electricity and
water for a care attendant. For example, the taxpayer cannot claim for the
space (for example room) used by the person with a disability in the
The following documentation must be
retained for audit purposes when a medical allowance is claimed for a year of
A completed list of amounts not
submitted to or recoverable from the taxpayer’s medical scheme, together with
proof of such amounts incurred and paid.
A duly completed and signed Confirmation
of Disability (ITR-DD) form.
The aforementioned documentation as well
as receipts must not be submitted with the annual income tax return, but must
be stored and made available on SARS’ request, in the event that the taxpayer
is required to substantiate the medical claims. The taxpayer is required to
keep records such as receipts, paid cheques, bank statements, deposit slips and
invoices for five years from the date on which the return for the relevant year
of assessment was received by SARS.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.