Tax season for individuals officially opens on the 1st of September 2020. If you are a member of a medical aid, you may be entitled to register for a medical tax credit depending on your medical scheme contributions.
The Medical Scheme Fees Tax Credit (MTC) is a rebate applied for the relevant tax year assessment where the South African Revenue Service (SARS) exchanges a portion of your healthcare expenditure into a medical tax credit. This amount is a non-refundable tax rebate; however, it does contribute to reducing the total tax amount you owe to SARS.
The medical tax credit system has two applicable amounts. These amounts are generated from the medical scheme fees tax credit and the additional medical expenses tax credit.
To be eligible for a medical fees tax credit you must be a taxpayer who is also a paying member with a medical aid scheme. The reimbursement is calculated from the contributions you paid to a registered medical scheme on behalf of yourself and your dependents.
The additional medical expenses tax credit is worked out from certain qualifying medical expenses incurred by yourself and/or your dependents that your medical aid or gap cover provider didn’t pay for. You may be entitled to claim additional medical expenses tax credit which is calculated based on different factors with varying limitations.
Glopin Healthcare Consultants are ready to make the medical process of filing for your tax returns stress-free. Contact us for assistance to obtain your tax certificate which should reflect your healthcare contributions in order to complete the medical section of your annual tax return.