UNDERSTAND THE NEW MEDICAL AID RELIEF 2012

As from 1 March 2012

65 years and older

May claim all qualifying expenditure incurred and medical aid contributions paid by the taxpayer or employer as a deduction against taxable income

Younger than 65 years

Medical aid contributions may be claimed as a credit against tax payable as follows:

o R230 per month each for the taxpayer and the first dependent

o R154 per month for each additional dependent

o Other medical expenses which may be claimed as a deduction against taxable income include:

· so much of the medical aid contributions made by the taxpayer or employer as exceeds four times the medical credit limit

· there qualifying medical expenses

· The taxpayer may deduct the other medical expenses to the extent that it exceeds 7,5% of taxable income before this deduction and any retirement lump sum benefit

Younger than 65 years (if an immediate family member has a disability)

o Medical aid contributions will be claimed as a credit against tax payable as above

o Other qualifying medical expenses may be deducted against taxable income, as above, but without the 7,5% limit.

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