How do you calculate Med/Scheme tax credit and Additional medical expenses
By Marc Sevitz · Updated
My Medical scheme fees for the year are R22 896.00 and additional medical expenses R8335.
In the line ?%u20AC%u0153Medical scheme fees tax credit?%u20AC? I enter R6168 (R257x2x12).
Excess Medical scheme fees are R4392 (R22896-3xR6168)
In the line ?%u20AC%u0153Additional medical expenses?%u20AC? I enter R4342.33 (R4392 R8335)/3
Am I correct in my interpretation?
Are you trying to complete a provisional tax return (IRP6)?
I used the figures in my question when I completed the 1st Provisional tax IRP6.
I just need confirmation that I have interpretted the new method of showing medical expenses as it seems more favourable than the previous method.in that the result is deducted from Tax payable.
Previously, medical expenses reduced the taxable income.
I just need confirmation that I have interpretted the new method of showing medical expenses as it seems more favourable than the previous method.in that the result is deducted from Tax payable.
Previously, medical expenses reduced the taxable income.
Your interpretation is correct. All expenses are now a credit and no longer a deduction.
Thank you for your reply.
Only a pleasure!