When it comes to medical expenses, we can find ourselves paying monthly amounts, large and unexpected lump sums and scheduled payments to medical aids and savings plans. Here is your reference list for which medical expenses are tax deductible, broken down into two categories.

Medical Tax Credits

For anyone who is on a medical aid plan, a tax credit is given and can be claimed back with a tax return, this amount it R332 per month for 2022. An employer might also pay the medical aid on behalf of the employee. If this is set up, the credit will usually be given to the employee and the credit will not be refunded in a tax return. There are different amounts that an individual’s tax would be lowered by on a monthly basis rather than a tax return refund, these are based on the individual being a primary medical aid member without dependents, or being the primary member with dependents.

Additional Medical Expenses Tax Credits

In addition to the medical aid scheme tax benefits, there are medical expenses that will lower an individual’s tax or be offered in a tax return refund. These include out-of-pocket expenses such as services or medicines supplied by a registered medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopedist. Should an individual be hospitalized or require stay in a home or assistance by a nurse, midwife or assistance, these expenses qualify for deduction should they exceed 7.5% of taxable income. Medicines from a pharmacy are deductible provided these are prescribed by a doctor. 

Should a South African taxpayer have the need to pay for services and/or medical expenses that fall into the categories above whilst outside of the country, these expenses will also be eligible for tax deduction.

Need some help with your medical expenses and tax?

If you have any questions, need help understanding the ins and outs of tax, or are looking to have someone else handle your taxes entirely, contact us at info@smithandrossi.com, via our website, or on social media.