Navigate the tax maze: claiming deductions for disabled dependants made simple and clear

Source: Webber Wentzel

4 Dec 2024

Proper documentation and careful filing are essential for successful tax claims for dependants with disabilities. Here's what you need to know.

If you have dependants with disabilities, you are eligible to claim additional tax deductions under specific conditions. These can include the costs of medical expenses, special care and related services.

Duncan McAllister, a consultant at Webber Wentzel, notes that the definition of dependant for tax purposes is important.

It includes your spouse, your child and the child of your spouse, any other member of your family who falls under your care and support, and anyone who is recognised as your dependant under the rules of a medical scheme or fund.

The South African Revenue Service (SARS) recognises that parents and their children have a reciprocal duty of support.

Grandparents have a right to support from grandchildren, but only if their own children are dead or unable to support them.

A brother or sister can claim support from their siblings, but only if their parents are unable to provide any support.

“The duty of support generally does not extend as far as cousins, step-parents and stepchildren, and between in-laws,” says McAllister.

“But the courts have cast the net wider in some circumstances. For example, in one case the court awarded damages to an aunt whose nephew had been killed in a car accident, as their relationship was like that of mother and son.”

It is also worth noting that if you are using products such as gap cover or medical insurance, you will not qualify for medical tax credits.

Danielle Luwes, tax manager at Hobbs Sinclair Advisory, provided this guide to understanding and claiming these deductions under SARS regulations:

Eligibility criteria

To qualify, your dependant must meet the SARS definition of disability, which encompasses any “moderate to severe limitation” in performing daily activities. This includes physical, mental, intellectual or sensory impairments such as autism, Asperger’s syndrome and other long-term conditions that substantially affect daily functioning.

Deduction rates

Most taxpayers can only claim 25% of medical expenses that exceed 7.5% of their taxable income, but those supporting disabled dependants are eligible to claim 33% of all qualifying expenses without meeting an income threshold. This additional relief applies to a broad scope of costs, including medical aids, therapies and specialised care or schooling.

tax relief Eligible expenses

The tax deduction applies to a variety of essential costs, including specialised schooling and therapies such as speech and occupational therapy.

It also includes medical equipment, aids and caregiver fees; transport costs where distances exceed 10km in order to access special needs schooling; and school fees for dependants attending special needs institutions, up to the cost of the nearest public school without special provisions.

Read more: How pensioners can grow wealth and pay less tax

However, school fees that exceed those of the nearest public school may require additional justification, especially if they surpass basic tuition costs.

Required documents

To apply for the rebate, you need to submit specific documents, including a SARS-recognised medical certificate (ITR-DD) verifying the disability, receipts for all qualifying expenses and any other supporting documents required by SARS.

Claimants are encouraged to review any yearly updates in documentation standards, since SARS occasionally updates its guidelines for acceptable documentation.

Filing process

You should submit all deductions through SARS’s eFiling system or other relevant forms. Luwes stresses the importance of careful documentation because all expenses must be substantiated to ensure claims are accepted. DM

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.

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Eligibility criteria

Deduction rates

Required documents

Filing process