THE government is proposing to close a loophole in the medical tax credits you receive when claiming tax deductions for medical expenses.
The medical tax credit system was introduced in 2011, replacing the system whereby qualifying medical expenses were deducted from your taxable income. The new system gives you credits (essentially rebates) for your medical scheme contributions and other medical expenses.
For the 2018/19 tax year, if you are younger than 65 and not disabled and have no disabled dependants, you may claim tax credits for your medical scheme contributions as follows:
- R310 a month if the contributions are for you only;
- R620 a month if the contributions are for you, plus one dependant; with
- R209 for each additional dependant.