If you are under the age of 65 and want to know whether you are entitled to any tax relief for medical expenses that you were not able to claim from your medical scheme, you need to do the following calculation.
- Determine your annual contributions to your medical scheme.
- Determine your medical fees tax credit for contributions paid. See what the credits are in the Tax Tables
- Multiply the credits for the year by 3.
- Deduct the answer in step 3 from the answer in step 1.
- Add up your unrecouped medical expenses. Add these to the answer in step 4.
- Multiply the answer in step 5 by 33.3%
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Sam, aged 65, and Sam’s spouse, aged 63, are paying R3874 a month to belong to their medical scheme. They have paid R16 200 of medical expenses out of pocket.
The medical scheme fees credit is R347 a month each for the first two dependents and R243 a month for any subsequent dependents.
- Sam’s annual contributions are: R3874 x 12 = R46 488
 Sam’s medical tax credit is R347 + R347 = R694 a month. For the year, the credit is R694 x 12 = R8328
- Three times this medical tax credit for the year is R8328 x 3 = R24 984
- Sam’s medical scheme contributions exceed three times the credit by R21 504 (R46 488 – 24 984)
- Sam’s unrecouped medical expenses are R16 200. The unrecouped expenses plus the contributions above three times the medical tax credit are R37 704 (R21 504 + R16 200)
- Sam can claim R37 704 x 33.3% = R12 555 as an additional medical tax credit.
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