Just doing some comparison calculations on the new Medical Tax Credits.
The law says that in addition to the tax credit ( R9216 in the example below ), I can claim expenses ( & contributions ) LESS ( 4 x the Tax Credits ), Limited to the amount in EXCESS of 7.5% of taxable income.
So if :
Contributions = 49,510.00
Tax Credit (230+230+154+154)*12 = 9,216.00 this would be deducted from the tax payable.
Contributions above Credit = 40,294.00
Less Tax Credit x 4 = -36,864.00
Excess Claimable = 3,430.00
Limited to 7.5% of Taxable Income ( of 126,000.00 ) = Not Claimable = 9,450
Additional Claimable = 0
1. is the 7.5% of taxable income calculated using the taxable amount BEFORE or AFTER the Primary Rebate ?
2. is the Additional Claimable ( if any ) deducted from the taxable income ( like in the old system ), or deducted from the Tax Payable ( like the new tax credits ) ?