Are you making full use of your tax breaks?

According to a recent article in Personal Finance, Taxpayers with disabilities or who have disabled family members are probably not making full use of the tax deductions to which they are entitled.

Eugene Bendel, founder of Bendels Consulting which specialises in assisting families affected by disabilities, says that in his experience taxpayers with disabilities or who have a disabled family member should be claiming an average of R150 000 a year for their expenses.

Lack of knowledge by taxpayers and their consultants is the reason taxpayers affected by disabilities are not claiming the deductions to which they are entitled.

What expenses can you claim?
There are three broad categories of disability-related expenses you can claim against your taxable income:

  • Medical scheme contributions;
  • Unrecouped medical expenses;
  • Expenses you necessarily incur as a result of a disability.

The last of these is the most complex and often results in the highest deductions.

The Income Tax Act defines a disability as a “moderate to severe limitation” of the ability to function or perform daily activities as a result of a physical, sensory, communicative, intellectual or mental impairment.

The change in the definition means that taxpayers can claim for a much wider spectrum of disabilities than those of which you may typically think.

Read the full article in Personal FInance.

[ Posted 15 June 2012 ]

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