Can a person get a tax credit for medical expenses if that person does not have medical aid?
17 February 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: Can a person get a tax credit for medical expenses if
that person does not have medical aid?
A: The medical scheme rebate is
claimed in terms of s6A Income Tax Act (”ITA”) and partly in terms of s6B for
which you have to be the payor of the medical scheme contribution for either
yourself or a dependent. For example if the payor husband is not on medical aid
but pays his wife’s medical aid, then he can still claim the medical rebate in
s6A ITA notwithstanding that he I not a member of that medical scheme. He would
however have to prove to SARS that he is the payor, the payment was to a
medical scheme and the beneficiary of the payment was a dependent” as defined.
Furthermore, the payor of
additional medical expenses (or those expenses paid that the medical scheme did
not cover) for himself or a dependent, can also claim a rebate for the listed
medical expenses per s6B ITA (e.g. doctors, dentists, optometrists etc. and
prescription medicine) . A taxpayer can therefore claim these additional
medical expenses even if he is not on a medical scheme, though it is limited to
specific payments and not all medical expenses.
Section 102 of the Tax
Administration Act places the burden of proof that an amount is deductible on
the taxpayer. Therefore the taxpayer would (similar to s11(a) ITA) have to
prove that the qualifying expenses were in fact incurred and paid in the
relevant year of assessment by providing proof to SARS, such as invoices and
receipts for the amounts incurred and paid.
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.