At Numberwize, we specialize in ensuring that individuals with disabilities or those caring for family members with disabilities receive the full tax benefits they're entitled to.
Understanding Disability Tax Benefits
Tax benefits for disabilities are designed to help reduce the financial burden on those with long-term health conditions. Here’s how SARS defines and handles these benefits:
Definition of Disability: SARS categorizes a disability as a moderate to severe limitation in daily activities due to physical, sensory, communication, intellectual, or mental impairments.
Qualifying for a Rebate: To qualify, the impairment must:
1. Be diagnosed by a registered medical practitioner who can document the disability on the ITR-DD from.
2. Last more than a year.
3. Remain moderate to severe even after maximum treatment.
Physical impairments that don’t meet the full criteria for disability but still affect daily functions can also qualify for tax credits, albeit to a lesser extent.
Eligible Expenses:
SARS allows claims for a variety of expenses related to disability and physical impairments. This is just a few to mention:
Travel and transportation
Personal care attendants
Home modifications
Maintenance and supply of aids like prosthetics and orthopedic shoes
Services such as special education schools or rehabilitative therapy, expenses related to tutoring or personal classroom assistance.
Prescription spectacles and contact lenses.
Service animals
Claiming Your Tax Relief:
South Africa offers tax relief through a medical tax credit system, comprising:
• Medical Scheme Fees Tax Credit (MTC): Applied via payroll or claimed annually for medical scheme contributions.
• Additional Medical Expenses Tax Credit (AMTC): For out-of-pocket medical expenses related to a disability.
Steps for a Successful Claim:
Consult a Specialist: Work with a tax expert like Numberwize to ensure your claims are valid and optimized.
1. Document Everything: Save all relevant receipts and invoices, ensuring they're in the claimant's name.
2. Record Travel: If claiming travel expenses, maintain detailed logbook.
3. Complete the ITR-DD Form: Download and have it filled out by a qualified medical practitioner. Form available on our website or on SARS.gov.za
4. Claim Retrospectively: You may be eligible to claim for previous tax years up to three years back if you've previously missed out on these benefits.
Remember: The ITR-DD form remains valid for 10 years for permanent disabilities, and 1 year for temporary conditions.
Maximize your tax benefits this year with Numberwize. We are here to help you navigate the complexities of disability tax credits to ensure you receive every benefit you deserve.
For more information or to schedule a consultation, contact us today!
Warm regards,
Your Team at Numberwize
