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Question
Posted by: Liza | 2011/08/22

RE: Tax benefits - a sample calculation

Person A spent R30 000 on medical expenses and earns R150 000 per year.
Person B also spent R30 000 on medical expenses and earns R150 000 per year, but Person B is handicapped.

Both pay 20% tax on their salaries (just as an example).

Person A can claim the following back:
The amount above 5% of your earnings i.e.
R30 000 - ( (R150 000 / 100) * 5)
= R22 500 (Qualifying expenses)
R22 500 * tax rate
= (R22 500 / 100) * 20
= R4500

Person B can claim the following back:
The amount above R500 of your earnings i.e.
R30 000 - R500
= R29 500 (Qualifying expenses)
R29500 * tax rate
= (R29500 /100) * 20
= R5900

Hope this helps.
Liza

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Our expert says:
Expert ImageCyberShrink

Gosh. Very competent and helpful, thanks

The information provided does not constitute a diagnosis of your condition. You should consult a medical practitioner or other appropriate health care professional for a physical exmanication, diagnosis and formal advice. Health24 and the expert accept no responsibility or liability for any damage or personal harm you may suffer resulting from making use of this content.

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Our users say:
Posted by: cybershrink | 2011/08/22

Gosh. Very competent and helpful, thanks

Reply to cybershrink

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