Samantha Sithole is 37 years. She belongs to a medical fund and makes monthly contributions to this fund in respect of herself, her spouse (a dependant) and two children (both dependants). She paid R25 000 to the medical scheme during the current year of assessment and she also incurred and paid for qualifying medical expenses of R15 000 during this year. Her taxable income is correctly calculated as R299 300. None of the members registered in the medical scheme has been diagnosed as a person with disability as defined by a registered medical practitioner in accordance with the criteria prescribed by the Commissioner. YOU ARE REQUIRED to calculate the medical scheme fees tax credit for the current year of assessment.a.R4 995b.R14 640c.R10 252d.R0
Question
Samantha Sithole is 37 years. She belongs to a medical fund and makes monthly contributions to this fund in respect of herself, her spouse (a dependant) and two children (both dependants). She paid R25 000 to the medical scheme during the current year of assessment and she also incurred and paid for qualifying medical expenses of R15 000 during this year. Her taxable income is correctly calculated as R299 300. None of the members registered in the medical scheme has been diagnosed as a person with disability as defined by a registered medical practitioner in accordance with the criteria prescribed by the Commissioner. YOU ARE REQUIRED to calculate the medical scheme fees tax credit for the current year of assessment.a.R4 995b.R14 640c.R10 252d.R0
Solution
The medical scheme fees tax credit for the current year of assessment can be calculated as follows:
According to the South African Revenue Service (SARS), the medical scheme fees tax credit for the 2021 year of assessment is R319 per month for the first two beneficiaries (Samantha and her spouse) and R215 per month for each additional beneficiary (their two children).
So, the calculation would be:
For Samantha and her spouse: R319 x 2 = R638 per month For their two children: R215 x 2 = R430 per month
Total monthly tax credit: R638 + R430 = R1068
Total annual tax credit: R1068 x 12 = R12 816
Therefore, the medical scheme fees tax credit for the current year of assessment is R12 816. However, this option is not available in the choices provided. There might be a mistake in the question or the provided choices.
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