Publications
Partners
[http://www.shutterstock.com]
A Fin24 user recently resigned from his job and then had some medical expenses. He writes:
I recently resigned from my job and took my provident fund out as a lump sum. I had paid about R14 000 tax on it.
In March I had a medical procedure, which my medical aid didn't pay for. I ended up paying cash for it.
How does this work when I file my tax return? Do I get any of the money of the provident fund and the money paid to my doctor off as a rebate?
Marc Sevitz of TaxTim responds:
The taxes paid on the provident fund withdrawal are once-off and not refundable.
The amount spent on the medical procedure and not covered by medical aid will only be allowed as a deduction if it is above a certain level, which is roughly anything over 7.5% of your income.
You would enter this amount into the tax return and the South African Revenue Service will work out if there is a deduction.
For more information on tax on out of pocket medical expenses, see this blog.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
I recently resigned from my job and took my provident fund out as a lump sum. I had paid about R14 000 tax on it.
In March I had a medical procedure, which my medical aid didn't pay for. I ended up paying cash for it.
How does this work when I file my tax return? Do I get any of the money of the provident fund and the money paid to my doctor off as a rebate?
Marc Sevitz of TaxTim responds:
The taxes paid on the provident fund withdrawal are once-off and not refundable.
The amount spent on the medical procedure and not covered by medical aid will only be allowed as a deduction if it is above a certain level, which is roughly anything over 7.5% of your income.
You would enter this amount into the tax return and the South African Revenue Service will work out if there is a deduction.
For more information on tax on out of pocket medical expenses, see this blog.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
