Tax certificates are sent to members during the month of May each year. This information is supplied in order for members to correctly complete their income tax returns.
The Medical Scheme Tax Certificate reflects the following information:
- Medical Scheme contributions – received by the Scheme on the member’s behalf for the period 1 March to 28 February of each year.
- Interest earned on balances in a Medical Savings Account – IT3(b) on the certificate indicates the total interest earned from positive balances in a member’s Medical Savings Account. As the Scheme administers money within a savings component we are required to tell members how much interest they have earned. The amount reflected as interest on the IT 3(b) certificate therefore shows the total interest earned from the Medical Savings Account (if applicable), where interest is calculated in arrears.
- The closing Medical Savings Account balance shows the total contributions paid into this account, less the claims paid, plus interest earned until 28 February.
- Medical claims not paid by the Scheme – representing the total value of claims (or portions of claims) submitted but not paid by the Scheme during the tax year.
- Monthly breakdown of the main member and all active dependants. As of 1 March 2012, SARS amended medical aid tax benefits for people younger than 65 by converting the medical deductions to medical tax credits. The main difference between the two is that a medical tax credit reduces a member’s tax liability, while a tax deduction reduces a member’s taxable income. Going forward, this means that the portion of medical scheme contributions members are able to get a tax benefit on, is now calculated using a “capped” monthly maximum Rand amount based on the number of people on the membership. Members of 65 years or older may claim a tax benefit for the full medical scheme contribution.
- It’s important for members to always submit all claims to the Scheme, even if the day-to-day benefits have been exhausted. The reason for this is that claims not refunded by the Scheme will then accumulate towards the amounts reflected on the tax certificate for claims not paid by the Scheme, which could be beneficial to a member in terms of their tax reimbursement.
- To obtain a copy of your tax certificate you can log onto the Fedhealth website as a member, or call our Customer Contact Centre and request the certificate using the keypad.