Tax relief for handicapped dependents

Published Apr 3, 1996

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Do you have a handicapped dependent. If so check your tax claims - you may be paying more than you need.

This is the advice from Ron Warren, chairman of Q Data DynamiQue, a computer software payroll and people management company.

Warren says many taxpayers are unaware that they are allowed to deduct expenses if they are handicapped themselves or have handicapped dependents.

One of the clauses in the Income Tax Act states that if you, your spouse, child or stepchild are handicapped, you are entitled to deduct all medical expenses for the whole family over R500 from your taxable income.

This does not affect PAYE but if you submit a tax return, you can expect something back. If you are only subject to Standard Income Tax on Employees (SITE) then you can ask the tax office to take your medical expenses into account, Warren said.

The legal definition of a handicapped person was recently widened to include people who suffer from mental illness, which "may well encompass eating disorders like bulimia and other conditions that are expensive to treat".

Warren says employers should play a positive role in pointing out the potential savings to employees, who may well need a "well-deserved tax break".

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