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Tax refund from medical expenses

Aug 30 2013 19:47
Fin24
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

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tax  |  health  |  money
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