I have a questions that has stumped me and I can't find similar threads / cases.
A tax payer (70 yrs old) has a Medical Insurance (specifically not a registered medical aid):
(R50,000) Actual hospital bills paid during the year
R65,000 Insurance payout received to cover those medical costs
(R60,000) Medical Insurance paid during the year
As from above, the tax payer suffered medical costs of R50,000. He paid medical insurance during the year totalling R60,000. He received insurance payouts during the year totalling R65,000 because of the medical costs he suffered.
Because it's not a registered medical insurance he will not be able to claim the monthly medical allowance (or tax credits).
My question is this, can you still claim all the medical expenses on his tax return (as he's older that 65yrs) even though his medical insurance paid him out?
As the insurance is not tax deductible, I presume the insurance payout is not taxable either. If that is true, then he could still possibly claim those actual medical costs incurred?