No medical aid, medical expenses paid out of pocket
By Marc Sevitz · Updated
I don't belong to a medical aid, so I had medical expenses to the value of R21473.34 (kept proof of payments). I had income of R75485, and PAYE deducted of R2144. A refund of only R2144 shows on my IT34. It seems as if the medical aid expenses was not taken into account at all. Please explain?
You cannot be refunded more tax (PAYE) than you have already paid as deductions only reduce the actual taxable amount that tax is calculated on. Therefore although your deduction reduces your taxable income it has resulted in the situation where you do not actually owe any money to SARS and therefore are being refunded what you did pay in taxes.