Sometime people must visit therapists to better their quality of life. Unfortunately, there is a cost involved in doing this.
There is good news to this, although the total cost cannot be waived, it can be reduced if you complete your income tax return correctly.
The income tax legislation has been extended that more than physical disability cost can be claimed as a deduction from your income tax. This might in most instances result in a refund from SARS. Even previous years can be re-opened, and the benefit can be claimed for these years.
Below is a summary that can give taxpayers more information on the above deduction.
Medical And Disability Tax Deductions
Over and above medical tax deductions which have a limit, other expenses can be claimed in full if a dependent has a disability. Advisors normally interpret this definition as a person with a physical disability. The income tax act has been extended to include the following disabilities:
- Mental impairment
If a dependent qualifies under specific conditions for any of the above disabilities, then one’s total medical expenses relating to such a condition may be tax-deductible.
The list for mental impairments are extensive. Some of the more common conditions are:
- Bipolar Mood Disorder
- Attention Deficit Disorder (ADHD)
- Child abuse – physical or sexual
- Illiteracy or a low level of literacy
- Emotional problems relating to family matters such as: divorce, death, a new baby or absence of a family member
- Admission to retirement villages
- Alcohol/drug abuse
- Sexual dysfunctions
- Eating disorders – Anorexia Nervosa, Bulimia
- Sleeping disorders.
The following examples of expenses may be claimed as a tax deduction: (This is not a comprehensive list)
- Special educational schools:
- School assistant or classroom cost;
- School fees.
- Professional fees:
- Occupational Therapist
- Play therapist
- Medical Practitioner
- Social worker
- Special prescribed daycare facilities
- Tutoring services which are supplementary to primary education
- The cost of an animal specifically trained to be used as an aid to a person’s daily functions such as dogs, horses, etc.
- Training for workers and or parents and related expenses
- Salaries for special employees – au pairs, etc.
- Transport and traveling expenses – Payment of staff to and from the primary residence.
- Wigs – people who have suffered abnormal hair loss due to medical treatment.
- Special educational toys.
- Specialized dietary (Low GI, supplements, etc.)
- Specialized books.
- Any other expenses that are directly related to the condition.
Common physical impairments are:
- Artificial limbs / organs
- Spinal cord injury
- Partial/full paralysis
- Severe chronic immune system degeneration e.g. Lupus
Some expenses that qualify as a tax deduction are:
To obtain the above benefits an IRT-DD SARS form must be completed and kept at hand if requested by SARS. It must be completed by the taxpayer and signed by a duly registered medical practitioner who is qualified to express an opinion regarding the person’s disability. The list of such practitioners is extensive and includes occupational therapist etc.
For more information contact us below:
Muller Tax Consultants
Mobile: + 27 (0) 083 453 6411
Tel: + 27 (0) 012 991 7686
45 Portofino, 753 Old Farm Road, Faerie Glen, Pretoria, South Africa. 0081