Staff author
Your medical aid card is hiding a refund
Paying a monthly medical aid premium automatically lowers your taxes. What most people miss is that paying for doctors and dentists out of your own pocket can trigger a second, completely separate tax refund.
How it works
Section 6A of the Income Tax Act provides a fixed monthly credit just for having a medical scheme. Section 6B provides an Additional Medical Expenses Tax Credit. This secondary credit kicks in when you pay for qualifying medical costs that your medical aid refused to cover. The benefit relies on a formula tied to your income bracket.
Specific Scenarios
* Scenario 1: The expensive dentist. Your child needs braces. The medical aid only pays a fraction of the cost. You pay the remaining R15,000 out of pocket. You submit the invoices to SARS to claim a portion back as a tax credit.
* Scenario 2: The prescription glasses. You buy new reading glasses, but your medical savings account is empty. You pay cash and keep the receipt. You add this to your tax return to boost your medical credits.
* Scenario 3: The physiotherapy sessions. You require weekly physiotherapy after a sports injury. Your scheme limits you to five sessions. You pay for the remaining ten sessions yourself and submit the proof of payment to SARS.
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When you are not eligible
You will not see a financial benefit if your out-of-pocket expenses are too small. For a standard taxpayer under 65, your unrecovered medical costs must exceed 7.5% of your taxable income before this secondary credit actually activates. Buying over-the-counter vitamins also does not count.
Ready to get your tax refund increase?
Complete TaxClaw’s 5-minute AI questionnaire to review your financial position against your auto-assessment. We’ll help you find ways to increase your refund and can optionally file the correction for you. We also available via email at hello@taxclaw.ai and via WhatsApp by clicking this link
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.