Understanding medical aid tax credits

The 2019 tax season has kicked off, and if you are a member of a medical aid you are entitled to a medical tax credit in respect of your medical scheme contributions.

What is meant by medical scheme fees tax credits

The South African Revenue Service (SARS) converts a portion of your healthcare expenditure over the course of the tax year into a medical tax credit. This is a non-refundable tax rebate which is deducted from the total tax amount you owe to SARS.

The medical tax credit consists of two amounts, namely the medical scheme fees tax credit and the additional medical expenses tax credit.

Medical scheme fees tax credit

This tax reimbursement applies to the contributions you paid to a registered medical scheme on behalf of yourself and your dependants. This is a fixed monthly amount which increases according to the number of registered dependants on your medical aid.

Additional medical expenses tax credit

In addition to the medical schemes fees tax credit, you may also be entitled to an additional medical expenses tax credit for certain qualifying medical expenses incurred by yourself and/or your dependants that your medical aid or gap cover provider didn’t pay for. This tax rebate is calculated based on factors such as a person’s age, and qualifying medical expenses are subject to limitation.

Your medical aid tax certificate

Medihelp provides you with a tax certificate in order to complete the medical section of your annual tax return, for the period 1 March 2018 to 28 February 2019. Your tax certificate reflects the following:

• Monthly medical scheme contributions;
• A monthly breakdown of the main member and all active dependants’ contributions;
• The total interest earned on any positive balances in your personal medical savings account (applicable to Medihelp’s savings plans); and
• Claims not paid by your medical aid. (Important: This amount only reflects medical expense claims that you submitted but were rejected by Medihelp. This does not include medical expenses which you did not submit to your medical aid - you will have to submit these expenses separately).

Medihelp members can get their tax certificates on Medihelp’s Member Zone:

1. Log in to the Member Zone with your registered login details.
2. Click on Tax certificates on the homepage.
3. Choose the tax year and delivery method.

Where to find a detailed list of all your claims

You can find an itemised list of all your claims on the Member Zone. Simply click on Claims and select Claims statements from the dropdown menu.

Interested in joining Medihelp? Get a quote or speak to an adviser to assist you in making the right choice for your healthcare needs.