Staff author
Disability tax credits: What SARS allows
Taxpayers who have a disability, or who have a spouse or dependant with a disability, qualify for an enhanced Additional Medical Expenses Tax Credit under Section 6B of the Income Tax Act. This provision offers substantial relief for severe medical and lifestyle costs.
How it works
Standard medical expenses only yield a tax credit if they exceed 7.5% of a taxpayer's income. The disability provision removes this threshold entirely. You can claim 33.3% of your qualifying out-of-pocket medical expenses as a direct tax credit. This covers specialised therapy, chronic medication, hearing aids, and even specific modifications to a vehicle or home.
Specific Scenarios
* Scenario 1: Chronic care. A taxpayer supports an elderly parent who is visually impaired. They pay for a full-time caregiver. The costs of the caregiver can be claimed under the enhanced credit, provided the parent meets the definition of a dependant and the ITR-DD form is on file.
* Scenario 2: Specialized equipment. A taxpayer purchases a specialized computer screen reader due to a severe visual impairment. The cost of this assistive technology qualifies for the 33.3% tax credit.
* Scenario 3: Therapy and rehabilitation. A child with severe ADHD requires weekly occupational therapy. The medical aid limits the benefit, leaving the parents to pay cash. These out-of-pocket therapy sessions are fully eligible for the enhanced credit calculation.
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When you are not eligible
Minor ailments or temporary injuries (like a broken leg) do not qualify. The impairment must be moderate to severe and must have lasted, or be expected to last, for at least 12 months, as certified by a doctor on the ITR-DD form.
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Disclaimer:This article is for informational purposes only and does not constitute financial or tax advice, and is not exhaustive. Tax laws are complex and subject to change. We strongly recommend consulting with our registered tax practitioner to address your specific circumstances.