Learn how to save money , from adjusting daily and monthly habits to making long-term changes. Building a budget isn't magic, but it represents more financial freedom and a life with much less stress. What is the medical expense deduction? What kind of medical expenses are tax deductible? Hospital and nursing home care. Insulin and prescription drugs.
Other rules for the medical expense deduction. Funeral or burial expenses. Over-the-counter medicines. Most cosmetic surgery. How to claim the medical expense deduction. Itemize on your taxes. Use Schedule A. Is it worth claiming medical expenses on taxes? Consider your filing status. Revenue provides examples of tax relief on nursing home expenses.
See the Revenue website for more information on employing a qualified nurse in the home. In the case of children receiving treatment for cancer that is, child oncology patients and children with permanent disabilities, you can claim tax relief on the following as health expenses:.
Telephone: Where a child oncology patient or a child with a permanent disability is being treated at home, you can claim a flat rate payment to cover telephone rental and calls where those expenses are incurred for purposes directly connected with the treatment of the child.
Overnight accommodation: Tax relief is also allowable for parents or guardians of child oncology patients and children with permanent disabilities where the child needs to stay overnight in a hospital as part of their treatment and the parent or guardian is required to stay nearby. Travel: The cost incurred in travelling unlimited journeys to and from any hospital for:.
Where such trips are shown to be essential to the treatment of the child. There is a mileage allowance if you use a private car. Tax relief is granted under specific headings in respect of certain expenses incurred by kidney patients.
The amount of relief depends on where the patient receives care for example, in hospital or at home. Home dialysis and CAPD patients may claim tax relief on items such as electricity, telephone, laundry and travel expenses. Read more about kidney patients and tax relief on medical expenses here. If you have health insurance, you can get tax relief on the premium you pay to an approved insurer. You do not need to claim the relief — it is given as a reduction in the amount of the insurance premium you pay.
However, in some situations TRS does not apply, for example, where an employer pays the medical insurance premiums on behalf of an employee. This means that the employee does not get the Tax Relief at Source on the insurance premium and so the employee can make a claim directly to Revenue. You can get examples of how tax relief is applied where medical insurance premiums are paid directly by employers on Revenue's website. A child is someone under 21 years of age that a child premium has been paid for.
However, tax relief on nursing home expenses can be claimed at your highest rate of tax. This means that the portion of your income which is taxable at your highest rate of tax is reduced. You do not need to do anything about tax relief for health insurance or long-term care insurance because the credits are granted automatically at source TRS.
You can claim tax relief online using Revenue's myAccount service. You can also access the myAccount service on mobile and tablet devices using Revenue's RevApp. You can also claim medical expenses relief offline by completing a paper Form 12 pdf , or a Form 12S pdf a simplified version for routine tax returns and returning it to your Revenue office.
You can request a Form 12 or a Form 12S by calling Revenue at 01 and giving your name, your full postal address, your Personal Public Service PPS number and the number of forms you need. Alternatively, you can email these details to custform revenue. You can only claim for medical expenses if you have receipts to prove your claim.
Revenue's myAccount service includes a receipts tracker service which allows you to store your receipt details online. Private medical treatment is increasingly pushing the limits of medical aid scheme benefits and our wallets. It's an outlay few can avoid. Luckily, certain medical expenses come with a bit of tax relief in the way of tax credits.
A tax credit is a non-refundable rebate. This means that a portion of your qualifying expenses, in this case medical related spend, is converted to a tax credit, which is deducted from your overall tax liability the amount of tax you have to pay SARS.
You can't carry any unused credit over to the next tax year and it won't ever result in a negative amount or standalone refund from SARS. But many people are unsure of what medical expenses are allowed, and even more unaware of the medical aid tax credit calculations used.
SARS calls this rebate the Medical Scheme Fees Tax Credit and it applies to the fees paid by a taxpayer to a registered medical scheme for you as the taxpayer and your dependants. Medical Scheme Fees Credit per month:. If John pays for medical aid for himself, his wife and his 3 children, his medical scheme fees tax credit will be calculated as follows.
If you're paying your contributions via your employer, i. If not, completing the medical aid contributions section of your annual tax return will apply the permitted credit for your advantage. The Additional Medical Expenses Tax Credit is an additional tax reduction that takes the following two amounts in consideration:.
Out-of-pocket expenses are a bit more complex. If you submit ALL your medical expenses to your medical aid, this amount is normally reflected on your tax certificate from the Medical Aid as 'claims not paid', 'amount not reimbursed' or something similar.
Remember this won't include expenses you incurred but didn't submit to medical aid.
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