Medical Deductions – Source Codes 4040 and 4020

By Marc Sevitz · Updated 15 November 2013

I have incurred medical expenditure for the tax year ?%u20AC%u201C I have bills that I paid out of my own pocket, which my Medical Aid did not cover adding up to R7122 and I have an Income Tax Certificate from my Medical Aid with the amount of R6686. Also there are amounts on my IRP5/IT3(a) Employee Tax Certificate next to the codes 4005 and 4474.
Questions:
1. Should my bills add up to the same amount that appears on my Medical Aid Certificate?
2. Do I leave code 4040 blank and add my Bills (R7122) and the amount on the Certificate (R6686) together and put the sum of them under code 4020?

TaxTim Marc said:
16 November 2013 at 18:19

You may have had bills that your pharmacy or doctor did not submit to the medical aid and therefore they did not know about it and reflect it on the certificate. The extras, do you know if they were submitted to the medical aid and rejected? If they are different then you would add them up and put them under 4020, if they are they same, then put the correct amount.

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Cat said:
18 November 2013 at 14:33

Thank you for the reply. I think I have one bill that I may have forgotten to submit to the medical aid ?%u20AC%u201C this about makes up the difference (except for R11).
I understand now.

TaxTim Marc said:
18 November 2013 at 16:10

Only a pleasure! Glad we could assist!