How to avoid the annual tax headaches

2014-02-09 14:00

Although the tax year ends in February, the closing date for your tax filing is usually in November.

If you open a tax file now and keep all your supporting documents in one place, it will save you the hassle and worries associated with tax-filing season later down the line.

Anthea Scholtz, a partner at Deloitte, says if you want to submit your tax return timeously, it is a good idea to set aside the following documents now:

»?IRP5/IT3(a) certificates issued;

»?A travel logbook if you are going to claim a tax deduction against a travel allowance;

»?Receipts for medical expenses directly paid by yourself and not your medical aid;

»?Proof of medical aid contributions made to the medical aid fund and the number of dependants on the fund if you are going to claim a medical aid tax credit;

»?Proof of contributions to retirement annuity funds; and

»?Proof of investment income like interest-income certificates.

Medical aid deductions and tax credits

For 2013, the monthly tax credit amounts for each month during the tax year that contributions were made to the medical aid fund are as follows:

»?An amount of R230 each for the taxpayer and his/her spouse or first dependant; and

»?An amount of R154 for each additional dependant.

If you are a taxpayer under 65 years of age (and who is not a person with a disability or has a spouse or child with a disability), you can claim the following tax deduction in respect of medical expenses:

»?Any annual medical aid contributions that exceed four times the amount of your medical aid tax credit; and

»?All your qualifying medical aid expenses (out-of-pocket expenses) that exceed 7.5% of your taxable income before this deduction.

Note that this rule will change from March 1 2014.

Karen Botha, tax director at PricewaterhouseCoopers, says your medical aid usually issues you with a tax certificate that sets out all the information required for your tax return, including contributions made by you and your employer, the number of dependants you have and expenses that were not paid for by your medical aid.

If you chose to pay cash for a few expenses and did not submit the invoices to your medical aid, you have to keep the cash invoices.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.