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Thread: Medical aid deduction - challenge SARS

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    Medical aid deduction - challenge SARS

    Medical aid deduction - challenge SARS

    A simple calculation for any one?

    Year: 2012
    Taxable Income R118 472
    Medical aid contribution R 38 772 two persons for the whole year.
    Portion self-paid R784.

    Under 65
    No Disabilities

    SARS result = R31 967
    Me = R 30 670

    My calculation:

    Caped amount: 720 X 12 X 2 = R17 280 (a)

    Portion over Cap = R 21 492
    Self-Paid = R 784
    Thus Amount subject to 7.5% of taxable income = 21 492 + 784 - (7.5% * 118 472) = 13 390 (b)

    Deduction = R 30 670 (a)+(b)

    Who is the dummy ?

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    When you calculate the limit of 7.5%, you should first subtract the capped amount (R118 472 - R17 280). This would get you to the correct deduction.

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