Disability expenses can be a heavy burden on individuals and families, but there is some relief available through tax deductions in South Africa.
A tax deduction is an expense that can be subtracted from your taxable income, which reduces the amount of tax you owe.
However, claiming these deductions can be a daunting task for those who are not familiar with the process.
In this article, we will guide you through the steps of claiming tax deductions for disability expenses in South Africa, so that you can save money and ease your financial burden.
Qualifying for Tax Deductions for Disability Expenses
Not all disability expenses qualify for tax deductions in South Africa. To qualify for tax deductions, the disability must be classified as a physical or mental impairment that has a substantial and long-term adverse effect on the person’s ability to carry out daily activities.
In addition, the expenses must have been incurred as a result of the disability, and must not have been reimbursed by a medical aid or insurance scheme.
Types of Disability Expenses that Qualify for Tax Deductions
There are several types of disability expenses that qualify for tax deductions in South Africa. These include:
Medical expenses that are incurred as a result of the disability, such as doctor’s fees, medication, and hospital costs, can be claimed as tax deductions.
Special devices and equipment
Special devices and equipment that are required as a result of the disability, such as wheelchairs, hearing aids, and prosthetic limbs, can also be claimed as tax deductions.
Home alterations that are required as a result of the disability, such as wheelchair ramps, grab rails, and stairlifts, can be claimed as tax deductions.
Expenses related to hiring a caregiver or nurse to assist with the person’s daily activities can also be claimed as tax deductions.
How to Claim Tax Deductions for Disability Expenses
Now that you have a basic understanding of what tax deductions are and what disability expenses qualify for deductions, let’s dive into the process of claiming these deductions in South Africa.
- Keep a record of all disability expenses
To claim tax deductions for disability expenses, you must keep a record of all expenses incurred as a result of the disability. This includes receipts, invoices, and any other documentation that proves that the expense was incurred.
- Submit a tax return
In order to claim tax deductions for disability expenses, you must submit a tax return to the South African Revenue Service (SARS). This can be done online or by visiting a SARS branch.
- Complete the ITR-DD form
When submitting your tax return, you must also complete the ITR-DD form, which is specifically designed for claiming tax deductions for disability expenses. This form requires you to provide details of the disability, as well as a breakdown of the expenses incurred.
- Submit supporting documents
Along with the ITR-DD form, you must also submit supporting documents that prove the disability and the expenses incurred. This includes medical certificates, invoices, and receipts.
- Wait for assessment
After submitting your tax return and supporting documents, you must wait for SARS to assess your claim for tax deductions for disability expenses. If your claim is successful, your taxable income will be reduced by the amount of the deduction.
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