Tax matters : will any of the medical expenses paid by a taxpayer on behalf of his parents qualify for a possible tax deduction?

Abstract

Section 18 of the Income Tax Act No 58 of 1962 (the Act) allows a natural person to deduct from his or her income certain qualifying medical contributions and expenses incurred during the year of assessment. What is important to emphasise is that not only expenses incurred with regards to the taxpayer personally but also expenses incurred in respect of his or her spouse, child and under certain conditions any dependant of the taxpayer might qualify for this possible deduction. With an aging population it is common that more and more parents are becoming dependant on their children for support. A possible question that arises is whether any expenses and contributions incurred by a taxpayer on behalf of his or her parent(s) will qualify for a possible deduction? In order for this question to be answered, careful consideration should be given to the provisions of section 18 of the Act.