Medical Aid & Retirement Annuity for pensioners?

By Marc Sevitz · Updated 5 July 2013

I am a pensioner so I filled in my medical aid under Code 4040 R16 446.00.

I also filled in Code 4006 for a small Annuity I have R198 per year.

When I run the calculation I have to pay in an enormous amount for a Pensioner. Have I inserted the above under the right Codes?

TaxTim Marc said:
7 July 2013 at 13:34

Did you enter in the number of members for the medical aid? Did you enter any income you may earn as well?

Priscilla said:
7 July 2013 at 14:06

Hi ... yes to both questions. My IRP5's were inserted automatically being my 2 pension payments as well as I worked for 7 months of last year, so I had 3 IRP5's all in all. The only additional thing I had to enter was my medical amount of R16,446 under 4040 as this was not paid by employer and my additional medical of R1,328 which was not paid by medical aid and my small Annuity R198. It is very simple yet I have to pay in R8,226.07.

TaxTim Marc said:
8 July 2013 at 9:27

The pension payments usually aren't subject to tax so was any PAYE withheld? Would you like me to see your ITA34 - you can mail it to tim@taxtim.com

Priscilla said:
8 July 2013 at 21:00

I will scan the Tax Calculator Result together with my tax submission tomorrow (I saved it on SARS site but have not yet submitted). I also don't understand how the tax rebate amount was arrived at but nevertheless I am sure SARS know what they are doing as this was automatically inserted.

I really appreciate your assistance as I just can't understand why I would have to pay in so much.

Priscilla said:
9 July 2013 at 21:50

Thank you Tim so much for your very generous and kind offer to assist me with my tax return. I am most appreciative.

Kind regards
Priscilla

TaxTim Marc said:
9 July 2013 at 23:41

Only a pleasure