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Income Tax
When making a claim for out-of-pocket medical expenses during income tax submissions, taxpayers should understand the clarification required for a successful claim. A typical medical aid scheme tax certificate details the member’s contribution and claims not covered by the scheme.

The total not covered is often what requires clarification and elaboration since if the scheme did not cover this cost is assumed that it was fulfilled by the taxpayer, though highlighting expenses not covered by the scheme is not sufficient evidence to prove that this was covered as an out-of-pocket expense.

What is an out-of-pocket medical expense?

Medical expenses paid by taxpayers during their year of assessment are known as ‘out-of-pocket’ expenses. These payments are considered when made to any registered medical practitioner for services rendered or medicines supplied. This also extends to costs associated with nursing homes, hospitals or nursing assistants. Pharmacist-issued medicines that were supplied on prescription are also considered for these claims.

The Income Tax Act states that taxpayers can claim for these medical expenses if they provide evidence for successful payments made. These costs must be actually paid by the taxpayer to qualify for the tax claim, not due or payable.

Retrieving the appropriate claim documentation

Taxpayers are required to provide legitimate documentation to prove their out-of-pocket medical expenses claim was actually paid. The amount paid should be proved with reference to the taxpayer’s bank account statements, which will be needed should SARS wish to conduct audits.

The tax professionals at MMS Group understand the intricacies of income tax filings. Our expertise gives us the edge to assist with comprehensive tax submissions that meet all compliance requirements. If you require assistance in maintaining accurate tax claims for out-of-pocket medical expenses and all other claims, contact our team.

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