eFiling Question - Medical Deductions

[rfnel]

Hi Everyone

I'm busy filling out my ITR12 on the SARS eFiling website, and I'm unsure of something in the 'Medical Deductions' section.

The very first line reads "Did you incur any medical expenditure (including medical scheme contributions made by you or your employer)?" Right below it, there is a section where you have to specify the number of members for each month. If I have been on a medical aid for the entire year, with myself as the only member, does this mean that I have to fill in '1' for each month?

Also, I should state any medical aid scheme contributions (4040) not reflected on my IRP5. For argument's sake, if I contribute R1 000 p/m to my medical aid, my employer contributes R1 000 p/m and my IRP5 shows a total contribution of R12 000, does this mean that I should fill in the other R12 000 in section 4040?

I'd really appreciate it if one of the knowledgeable folks on the forum could clear this up for me.

Thanks,
Riaan

[*A*]

Please note that if the contributions were paid over to the medical scheme by your employer, the amount will be reflected in the “Deduction/Contribution” section of the return/ IRP5/IT3(a) Employee Income Tax Certificate next to the code 4005 and/or 4474 and should therefore not be completed in the medical section of the return next to code 4040. The line item referring to medical contributions made by the taxpayer (source code 4040), in the medical section should be left blank. This line item should only be completed if you, in your private capacity, contribute to a medical scheme and the payment of the contributions is made by yourself via for example a bank account. In these cases, no amount should appear in the IRP5/IT3(a) Employee Income Tax Certificate section of the return next to the codes 4005 and/or 4474.

The Income Tax Act makes provision for consideration of any contributions made by a taxpayer in respect of him/herself, spouse and any dependant as defined in the Medical Schemes Act.

[rfnel]

Please note that if the contributions were paid over to the medical scheme by your employer, the amount will be reflected in the “Deduction/Contribution” section of the return/ IRP5/IT3(a) Employee Income Tax Certificate next to the code 4005 and/or 4474 and should therefore not be completed in the medical section of the return next to code 4040. The line item referring to medical contributions made by the taxpayer (source code 4040), in the medical section should be left blank. This line item should only be completed if you, in your private capacity, contribute to a medical scheme and the payment of the contributions is made by yourself via for example a bank account. In these cases, no amount should appear in the IRP5/IT3(a) Employee Income Tax Certificate section of the return next to the codes 4005 and/or 4474.

The Income Tax Act makes provision for consideration of any contributions made by a taxpayer in respect of him/herself, spouse and any dependant as defined in the Medical Schemes Act.

*A*, thank you for your response. The amount that my employer paid towards my medical aid is reflected in the Deductions/Contribution section. However, my employer pays 50% and I pay 50% (deducted before my salary goes into my account). To clarify - does this mean that I should not indicate my personal contribution towards my medical aid (the 50% that I pay, which is not included under the Deduction/Contribution section)?

Edit: Also, should I fill in the blocks for the number of members for each month?

[geraldenek]

Hello Riaan

You should complete the medical section and for each month you will put in 01.

On your IRP5 certificate:

code 4005 will correspond to that stated on your medical aid certificate.
Code 4474 is the amount the the employer contributed.
code 3810 is the fringe benefit

On your return you will state 0 next to 4040.

For example if you contribute 1000 and work 1000 the codes will reflect the following amounts on your irp5:
4005 = 12,000
4475 = 6,000
3810 = 6,000

[rfnel]

Hello Riaan

You should complete the medical section and for each month you will put in 01.

On your IRP5 certificate:

code 4005 will correspond to that stated on your medical aid certificate.
Code 4474 is the amount the the employer contributed.
code 3810 is the fringe benefit

On your return you will state 0 next to 4040.

For example if you contribute 1000 and work 1000 the codes will reflect the following amounts on your irp5:
4005 = 12,000
4475 = 6,000
3810 = 6,000

Thank you Geraldene! The whole thing makes much more sense now.

Edit: For future reference, anyone with a similar query can find a detailed description of the different codes here.

[geraldenek]

pleasure Riaan

[pearl]

Hi,

I am doing the efiling now and not sure what i am supposed to put on the section for medical contributions 4040.

my medical cert shows the following: contributions 14770, claims not recovered 2047-42.

my work irp5: code 4474 - 6896 and code 4005 - 13104

Last year i did it right but for the life of me i cannot remember.

can someone please help me, i dont want any issues with having to submit docs.

[Craigswanepoel@gmail.com]

Good day,

Please assist. Assume my monthly medical aid required payments are R1500 p/m and my employer contributes R500.00 p.m. towards the R1500.00 The 500.00 contributed is not paid over to the scheme but added to my salary. So R1500.00 debit order goes off my personal bank account.

Note also that we have to disclose the amount paid to the medical aid at the and of every month to my employer, annually. If they don't transfer the funds to the medical aid directly, why would they need to know what I pay from my account every month. Why does it show, according to the IRP5 provided, next to code 4005 R18000 (Which I assume is my annual medical aid payments). Does code 4003 play a role here?

Does code 4005 only apply if the employer made a direct payment to the scheme or does it include any contribution regardless if made to medical aid or employee?

Should I still leave code 4040 blank?

Regards

Craig

[Dave A]

This new way of doing medical deductions has got me confused too.

Is there a useful guide that deals with various examples available on this yet?