Tax and SARS knowledge base
What medical expenses qualify for the additional medical tax credit?
What medical expenses qualify for the additional medical tax credit?
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Direct answer
The additional medical tax credit is not a reimbursement of every healthcare payment. Whether an expense can be used in the calculation depends on the relevant tax rules, the category of taxpayer, the patient, the nature of the expense and the supporting documents. Treat qualification and calculation as separate questions.
The safest approach is to build a clear evidence file before completing your ITR12. A neat list of all spending is helpful, but it must be supported by source documents and separated from costs that are not medical expenses for tax purposes.
What this means in practice
Begin with medical scheme documents if you have them. The annual tax certificate, claim history and remittance advice show contributions, scheme payments and member portions. Then add costs not reflected on a certificate, ensuring that the evidence explains why they were personally paid.
An amount paid to a doctor, dentist, hospital or pharmacy should not be assumed to qualify simply because the supplier works in health care. Invoices can include different items, and some expenditure may need different evidence. Be particularly careful with wellness spending, supplements, household products and blended invoices containing medical and non-medical items.
The same amount must not be used twice. If a medical scheme reimbursed part of an invoice, retain the remittance advice and identify only the amount that remains relevant. If an employer, insurer, family member or another taxpayer paid an amount, document that arrangement. The tax review should follow the actual payment and taxpayer facts, not just the patient's name.
Step-by-step
- Collect source documents first.
Obtain medical tax certificates, invoices, receipts, statements, remittance advice and payment proof. Create a separate folder for each tax year.
- Build a simple evidence schedule.
Record the patient, provider, service date, invoice amount, reimbursed amount, personal payment and reference to the supporting document. This reduces duplicate claims and makes later verification faster.
- Separate certificate and non-certificate amounts.
Do not re-enter an amount merely because it appears on both an invoice and a medical certificate. Mark what has already been reported by the medical scheme and what requires separate review.
- Check unusual expenses before filing.
If an item is not clearly medical, is disability-related or is a large one-off cost, do not rely on a broad category label. Review current SARS guidance and get advice if the facts remain uncertain.
- Consider the taxpayer category.
The rules and calculation can differ where the taxpayer is older, has a qualifying disability or is supporting a qualifying dependant. That is why a receipt total cannot determine the final answer.
- Keep the records after assessment.
Retain the final ITR12, assessment and all source records. A later SARS verification is easier to manage if your schedule points to each original document.
Documents and records to keep
- Medical scheme tax certificate and remittance advice, if applicable.
- Provider invoices, receipts and proof of payment.
- Prescriptions, referrals and disability evidence where relevant.
- An expense schedule identifying the patient and tax year.
- ITR12, ITA34 and any SARS request for verification.
Important limits and exceptions
No article can provide a complete universal list of qualifying expenses without the relevant facts. Do not use a supplier name, an online product description or another taxpayer's return as a substitute for current evidence. The calculation changes with the applicable tax year, so avoid stale threshold or percentage claims.
When to get tailored advice
Ask for tailored advice where invoices are mixed, reimbursements are incomplete, costs involve disability or physical impairment, a dependant is an adult, or the total is material. TaxProof can help reconcile the records, but should not replace medical or legal evidence.