DID YOU KNOW that you can claim back from SARS out-of-pocket medical expenses!
What are you talking about? Surely they are not going to pay for these expenses? Anyway, what are these out-of-pocket medical expenses?
This answer is simple. They are expenses that your medical aid did not cover. Maybe your savings ran out or you have a basic hospital plan that does not cover the expense. These expenses are the money that you have paid to medical practitioners (conditions apply – see below.) and the pharmacy for medication. You pay tthem and you are out of pocket for those expenses.
What qualifies as an out-of-pocket expense?
According to SARS the following qualify:
Services rendered and medicines supplied by a registered medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopaedist;- Hospitalisation in a registered hospital or nursing home;
- Home nursing by a registered nurse, midwife or nursing assistant, including when supplied by any nursing agency;
- Medicines prescribed by a registered physician and acquired from a pharmacist;
- Medical expenses incurred and paid outside South Africa which is similar to the above expenses;
- Any expenses as prescribed by the Commissioner as a result of any physical impairment or disability.
If you have incurred these expenses out of your own pocket, you are allowed to claim these expenses back from SARS in your personal tax return.
Learn more about medical deductions here
Make you life easier
With the above conditions in mind, there other things you must consider to make your life easier come tax time:
- Make sure you keep the slip and the proof of payment if made by card (yes, the little credit card slip), just in case SARS ask you for it. This is important IF SARS ask for it because without this proof, you cannot verify that you paid for them.
- These slips fade over about 6 months and render the slip useless because it is blank. You cannot prove anything with a blank piece of paper (obviously!). Make sure you do one of the following to prevent this:
- Scan the slip and keep it safe on some sort of device – phone, computer etc
- Take a photo of it and keep it safe (make sure it is clear) Blurry = useless
- Make a photocopy and keep it safe (think of the trees first)
- Once you have done this – THROW THE SLIP AWAY!
- Make a summary of the expenses.
- I know you don’t like this but it will save you hours and hours when it comes to submitting your tax return.
- Do it one slip at a time as you get them, it will take 3 minutes and will eliminate the last minute rush and piles of slips.
- They have to be your expenses or a dependants expense, you cannot claim for anyone else. This may be obvious but, unfortunately, it does happen.
If you have any questions relating to these expenses and / or how to claim them, please contact us.
More information about this is also available on the SARS website
This article was updated on the 24th March 2021