TAX

[gertvanjoe]

Now I just want to double check something

My employer pays half of my medical and myself the other half. I get issued a yearly certificate stating all expenses not covered by the medical

Do I put it under 4040 or 4020

 

[Dane]

My interpretation is that 4040 is for when you contributed to the medical aid but it is not reflected on your IRP5. 4020 is the expenses not covered by the medical aid.

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[wiesbang]

Nope 4040 is for medical bills not paid by the medical aid

 

[Dane]

Only reason why I interpreted in that way is because of the descriptions actually on the return where 4040 is contributions and 4020 expenses not covered by aid.

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[Dane]

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[Dane]

Only reason why I interpreted in that way is because of the descriptions actually on the return where 4040 is contributions and 4020 expenses not covered by aid.

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Never mind, I am confused. Clearly need to read up on it myself.

Edit: actually the assumption was correct, this should clarify referring to both sections 4020 (expenses) and 4040 (contributions) - http://www.sars.gov.za/TaxTypes/PIT/Tax-Season/ITR12/Pages/complete-the-deductions-section.aspx

 

[Riaz]

Remember that medical expenses are the absolute last deduction in any tax return. So if you for example spent 5k out of pocket (expenses not covered by medical aid), it's not certain that you will get any of it back. It all depends on your taxable income and your other deductions as well. So you get a certain percentage of it back, if anything at all. Hope that makes sense.

 

[gertvanjoe]

ok so 4020

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