1.4 Medical Tax Credit

Medical credit: Is the fixed monthly medical rebate aimed at relieving personal tax; irrespective of the income.

  • The more the number of dependents the higher the medical tax credit; the person’s tax bracket is not
    considered.
  • The medical credit depends on the number of dependents.
  • Identify the number of members in the medical aid
  • The medical credit allocated to the first dependent equals to that of the main member; there after the medical credits of the remaining  dependent is the same for every additional member. First means being before all others with respect to time or order. i.e. anyone can be the 1st dependent, including wife/husband, depending on the order in which the dependents are captured.
  • Calculate the annual medical credits as they are given as monthly values on the tax table. This will depend on the number of months the tax payer had contributed to the medical aid.
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Activity 2: