Are you claiming your full tax relief for disability-related medical expenses? As a person with a disability or someone caring for a disabled loved one, you may qualify for significant tax deductions, income exclusions, and credits. Understanding and leveraging these benefits could significantly alleviate your tax burden.
To claim SARS' disability tax credits, the impairment must significantly impact daily life and be confirmed by a registered medical practitioner. It could be physical, sensory, communication, intellectual, or mental, lasting more than a year and meeting specific criteria. Treatment's effectiveness determines eligibility for disability or physical impairment classification.
SARS outlines eligible disability-related expenses, including travel, personal care, home modifications, aids/devices, prosthetics, prescription items, and services like special education or rehabilitative therapy. Expenditure must be directly associated with the qualifying disability.
Tax relief for medical expenses is facilitated through a medical tax credit system, covering medical scheme fees (MTC) and additional medical expenses (AMTC). AMTC applies to various medical expenses, including those related to disability, albeit capped at taxes payable. The relief depends on the taxpayer's circumstances and the nature of the disability.
For tax purposes, a disability is characterized by a moderate to severe limitation in a person’s ability to perform daily activities due to physical, sensory, communication, intellectual, or mental impairments. To qualify for tax rebates, the condition must be diagnosed by a registered medical practitioner and persist for over a year with effects remaining moderate to severe post-treatment.
Utilize a tax specialist for relevant and compliant claims.
Keep all documents, ensuring they're in the name of the tax claimer.
Maintain accurate records for travel expenses.
Obtain and complete the ITR-DD form with a qualified medical practitioner.
Note the validity period of the ITR-DD form and consider retrospective claims for previous tax years, which can be resubmitted up to three years.
Our commitment is to empower our clients' financial success, making Numberwize a trusted partner in their journey towards prosperity and peace of mind.
If you have any enquiries please give us a shout!