How to calculate Tax Refund if over 65 with a disabled dependent

By Marc Sevitz · Updated 22 August 2013

I am completing my father's Tax Return for him. He is over 65 and has a dependent, my brother, who is mentally disabled. I have indicated this as such on the return and can see from the calculation that the full medical amount listed is shown as a deduction from the taxable amount. What is confusing me is the only amount being reflected as a refund is the PAYE he paid on some shares that he cashed in and there is no additional refund for any of the mental disabilities. Am I understanding the medical deductions portion incorrectly? I have filled in the amount not recovered from medical aid under 4020 as well as disability expenses not recovered from scheme under 4023. Do these simply reduce the net income portion or do they offer some form of refund? I have read on other forums with a disabled child you should be able to claim up to 40% of these medical expenses?

TaxTim Marc said:
23 August 2013 at 15:55

Does the refund equal all the tax he has already paid?

Mark said:
23 August 2013 at 19:25

Hi, the refund due is equal to the PAYE paid on the shares. My father is retired so there is no other income other than his RA payout. I assume the most you can get back in tax is equal to what you have paid in.

TaxTim Marc said:
27 August 2013 at 0:58

Yes correct, you cannot receive a tax refund greater than the amount of tax paid as this would then not be a refund, but SARS actually paying you money from their account.