![]() The money in your HSA doesn’t have to sit there and stagnate until you spend it. “You can grow your account over time and take it with you if you leave your current job.” “What makes HSAs unique is that the money is yours to keep, so your unused balance rolls over from year to year,” said Kathryn Bakich, a health compliance practice leader and senior vice president at the human resources and employee benefits consulting firm Segal. Your contributions, investment growth and withdrawals are all tax-free. What is a health savings account (HSA)?Īn HSA is a savings account that lets you set aside money to pay for qualified medical expenses. Contact us for more information or to discuss your needs.Complete the questionnaire and match with an advisor for a free, no-obligation call. We can assist you in joining the scheme that best suits your needs and budget. a list of qualifying out-of-pocket expenses, together with the relevant invoices and receipts.Īt IFC, we offer informed, objective advice about claiming Additional Medical Expenses Tax Credit in South Africa.a statement from the medical aid featuring the total amount of claims not paid by the scheme.proof of contributions paid to the medical aid scheme.SARS may request documents to validate the calculations relating to the medical tax credit, such as: Once the AMTC has been calculated for the year of assessment, the credit is entered on the individual’s ITR12 income tax return under the rebates section. In this scenario, a disability relates to one suffered by the taxpayer and main member of the scheme, a spouse or child dependant. Taxpayers under the age of 65 (with no disability):Ģ5% of the total medical aid contributions minus 4 x the medical schemes credit plus the out-of-pocket medical expenses minus 7.5% of taxable income. ![]() Taxpayers under the age of 65 (with a disability):ģ3.3% of the total medical aid contributions minus 3 x the medical schemes credit plus the out-of-pocket medical expenses.ģ. Taxpayers aged 65 and older (with or without disability):ģ3.3% of the total medical aid contributions minus 3 x the medical schemes credit plus the qualifying out-of-pocket medical expenses.Ģ. There are three formulas depending on age and disability.ġ. How to calculate the Additional Medical Expenses Tax Credit ![]() medical costs charged for treatment rendered outside South Africa.prescribed medication dispensed by a registered pharmacist.fees charged for home-based services by a qualified nurse, midwife or nursing assistant.fees charged by registered medical professionals, including dentists, optometrists, homeopaths, naturopaths, herbalists and osteopaths.Qualifying out-of-pocket medical expenses relate to: It must have lasted for at least a year.Īn ITR-DD Confirmation of Diagnosis of Disability form must be completed by the attending doctor and submitted to SARS. It can be physical, mental, intellectual, sensory or communicative in nature but it must be diagnosed by a registered medical practitioner. What constitutes a disability?Īccording to SARS, a disability is a moderate to severe limitation that impairs a person’s ability to function. The size of the rebate is dependent on age and whether the tax payer or a family member is living with a disability. It also provides an additional reduction on taxes in respect of excess medical aid contributions. The AMTC is a non-refundable rebate that covers a portion of the costs, relating to the taxpayer and his or her dependants, that are not paid by, or claimed from, medical aid in the year of assessment. Here’s what you need to know about how to claim Additional Medical Expenses Tax Credit in South Africa. In addition, SARS provides tax relief on out-of-pocket medical expenses in the form of the Additional Medical Expenses Tax Credit (AMTC). Tax-paying South Africans who contribute to a registered medical aid scheme are eligible for a fixed monthly rebate on their scheme fees.
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