[Question] Medical aid paid for parents

[Natashanaicker]

Greetings,

Two sibling pay 50% each of the medical aid contributions for parents. The total amount comes out of one siblings account and the other reimburses the amount with cash. Are both allowed to claim part of the medical tax credits?

Also, must there be a bank transaction in order to claim and what proof would SARS require.

[Hp10Bii]

The simple answer, assuming each sibling earns exactly the same Cost To Company salary and Nett-taxable earnings before medical expenses deductions:
I suggest that you contact the medical aid
1. and ask them to split the monthly contribution between the two bank accounts 50/50
OR
2. every year in September and change the banking details from the one sibling to the other for the contributions

Either way, each of you will have bank statements that proves that you paid half of the annual contributions.

The more complex answer if you are willing to put in the work:
Assess each sibling income and allowable deductions
Then see which sibling will get the biggest benefit (biggest reduction in tax payable) from claiming these contributions
Taking into account that calculating the allowed deductions for medical expenses is probably one of the most complex calculations on your tax return.
Then you just split the refund for these contributions once sars pays you

Assuming that you are trying to get the most money back from SARS and that you are both willing to share your salary details with each other

[dellatjie]

I like the second suggestion from Hp10Bii, I do not think that you will be successful in splitting the contributions.