[Question] MEDICAL TAX CREDIT

[StephanieB]

Hi Everyone

I am not sure about the medical tax credit. I am completing the IRP5's on Easyfile but would like to know the following:

The PAYE total is R77619 for the year but I have deducted the MTC of R3240. The total actually deducted was then R74379.
How must I show this on the IRP 5 please?

Thanks that I may ask.

Regards
Stephanie

[Christel]

Hi Stephanie,
You would record the total medical tax credit under code 4116 = 3240. You will record the actual paye, less the mtc under code 4102 = R74379
remember the total medical contribution (fb & employee) must be recorded under code 4005.

[StephanieB]

Hi Christel

I forgot to mention that the medical contribution was done by the Employee himself through his own bank account. So 4005 does not work. Can you please help in this regard?

[Christel]

You would still have code 4005 for the amount of the medical contribution, even though he paid it himself and although it was not a deduction.