Q: Med aid tax credit ??? Code 4116

[ahmedy]

Hi guys

please can you help me understand what is code 4116 in my IRP5?

My tax consultant states that I will not receive any rebate this year as the company i work for has already given me the credit, i can see an amount in my irp5 under code 4116 which is medical aid tax credit.

The issue though is that i have not received this credit/ monies from my employer at any time.

My employer does pay half my med aid if that makes any diff

Should i be going to HR and asking them where is this tax credit ? Am i owed this money by the company i work for?

[Andromeda]

When your employer deducted you PAYE from your salary, that deduction was reduced by the amount in code 4116; the medical aid tax credit.

For 2017 it was R286 per month for you, R286 per month for the 1st dependent and R192 for the next dependents(s).

Bear in mind that this only applies to contributions to the medical aid.

In a nutshell, you don't receive the credit; it is used to reduce your monthly PAYE.