SARS provides two types of tax credits to help taxpayers with medical costs: the Medical Scheme Fees Tax Credit (MTC) and the Additional Medical Expenses Tax Credit (AMTC).

1. Medical Scheme Fees Tax Credit (MTC) - Section 6A

This is the credit you've already included in your calculation. It's a fixed monthly rebate for contributions made to a registered South African medical scheme. It directly reduces your tax liability.

2. Additional Medical Expenses Tax Credit (AMTC) - Section 6B

This is a separate, additional credit you may be able to claim for qualifying out-of-pocket medical expenses that were not covered by your medical aid.

Who can claim AMTC and what can be claimed?

Qualifying expenses include amounts paid for services rendered and medicines supplied by registered medical practitioners, dentists, optometrists, homeopaths, etc., as well as hospital fees and prescribed medicines.

How the AMTC is Calculated:

The calculation depends on your age and disability status.

If you are 65 or older, OR if you, your spouse, or your child has a disability:
- You can claim 33.3% of:
  - Your total medical aid contributions that exceed 3 times your MTC.
  - PLUS all your qualifying out-of-pocket medical expenses.
For all other taxpayers (under 65 and without a disability):
- The calculation is more limited. You can claim 25% of the total medical expenses (including excess contributions and out-of-pocket costs) that are in excess of 7.5% of your taxable income.

Example Calculation (under 65, no disability):

Inputs:
- Taxable Income: R400,000
- Total MTC: R8,736
- Annual Medical Aid Contributions: R60,000
- Out-of-pocket expenses: R10,000

Calculate 4x MTC: 4 x R8,736 = R34,944
Calculate excess contributions: R60,000 - R34,944 = R25,056
Calculate total 'qualifying medical expenditure': R25,056 + R10,000 = R35,056
Calculate 7.5% of taxable income: 7.5% of R400,000 = R30,000
Calculate amount exceeding the 7.5% threshold: R35,056 - R30,000 = R5,056
Calculate the AMTC: 25% of R5,056 = R1,264

What to Do Next:
Keep Detailed Records! To claim the AMTC, you must keep all receipts and proof of payment for your out-of-pocket medical expenses throughout the year. When completing your tax return on eFiling, there will be a specific section to declare these amounts.

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