TAX AND DISABILITY WORKSHOP - Ethan Project rebates talk.pdf · Person in a wheelchair claims for a...
11
Transcript of TAX AND DISABILITY WORKSHOP - Ethan Project rebates talk.pdf · Person in a wheelchair claims for a...
What we will cover
Criteria for being considered a person with a disabilitySARS Definitions
DisabilityPhysical Impairment
Tax benefits for a person with a disability and physical impairmentsTax Deductable
Qualifying expensesExcluded expenses
How to claim for tax benefitsExample of tax claim information
Introduction and CriteriaExpenditure prescribed by SARS and which is and paid for by the taxpayer
is deductible in terms of section 18 of theIncome Tax Act, subject to certain limitations.
A taxpayer
A who has a disability,whose has a disability,or whose has a disability
is entitled to claim certain benefits in the form of additional medical expenses
Can claim 33.3,% of the qualifying out of pocket medical and disability expenses paid during therelevant year of assessment
Example:Person in a wheelchair claims for a hand-held GPS (this will not qualify)Person who is visually impaired or blind claims for a hand-held GPS (this may qualify)
SARS
“ ” means a moderate to severe limitation of a person’s ability to function or perform daily activitiesas a result of a physical, sensory, communication, intellectual or mental impairment, if the limitation—
(a) has lasted or has a prognosis of lasting more than a year; and(b) is diagnosed by a duly registered medical practitioner in accordance with criteria prescribed bythe Commissioner
The term “physical impairment” is not defined in the Act.
In the context of section 18(1)(d) of the Act it has been interpreted as a disability that is less restrainingthan a “disability” as defined.
The restriction on the isless than a “moderate to severe limitation”. Maximum correction in this context means appropriatetherapy, medication and use of devices.
SARS
Moderate to severe limitation whichaffects his or her ability to function or perform daily activities
as a result of a physical, sensory, communication, intellectual or mental impairment.
Vis Duly registered medical practitioner trained to use the Snellen chart (e.g. anoptometrist or ophthalmologist).
Hearing Duly registered medical practitioner trained to use the Diagnostic Audiometrytest (for example, an ear, nose and throat specialist or audiologist).
Speech For example, a speech-language pathologist.Physical For example, a physiotherapist or occupational therapist.Intellectual For example, a psychiatrist or registered psychologist
Mental For example, a psychiatrist.
Tax Benefits Disability vs Physical Impairment
Qualifying expenses as a deduction fromhis/her income (inclusive of VAT) can claim33.3% of expenses
Qualify prescribed expenses,subject to further limitationsNot automatically qualifies for the full 33,3%concession
Qualifying Expenses..some examples
Personal AttendantCare Expenses
Expenses related to special care –services to assist, guide, care for aperson with a disability or physicalimpairment regardless of place ofservices (home, nursing home,retirement home)
Nursing services, special careSalary for care attendantsagency fees, professional feesActual living-in expenses of: electricity, food, water , <10% ofannual salary
Domestic worker whosometimes cares for
Spouse/parent/ child isexcluded as a care attendantRent of room for carer
Training workers and/or parentsand related expenses
Special courses and trainingundergone by parents or careattended who will care for the personwith a
Limited to goods and servicesrequired as a consequence ofdisabil
Travel & Otherrelated expenses
Reasonable travelling expenses (inclaccommodation) to acquire goods/orservices (incl maintenance of suchgoods)
Travelling (and accommodation)to course in handling a guide dogTransport costs to special needsschool where no school >10 kmTransport costs to protectiveworkshop or daycare centre +
Must be to the nearest placewhere good and services can beaquired
Lin directly to disability -Doctor for vs hearing test
Insurance,Maintenance,Repairs andSupplies
Expenses related to insure, maintain,supplement and repair aids, specialdevices, alterations to assets, and orartificial limbs and organs
Qualifying Expenses..some examples
Prosthetics Prosthetic breasts, limbs, eyesCustom made braces for limbsWigs (abnormal hairloss due to disease, accident, or medicaltreatment)False teeth/ dentures
Aid & Other Devices Includes aids or devices required in order tofunction or perform daily activitiesInclu hiring of devices
Air conditioners, heaters, water filters, air purifiersComputer devices and related equipmentHelmets (protective gear) –used by people with epilepsyHousehold toolsSpecial education toys for person for disabilitySpeech generating devicesAnti-glare screensMobility ramps, wheelchairs, crutches…..
Services Expenses related to services acquired forsupporting person with disability
Deaf-blind intervening servicesLip-speaker servicesRehabilitative therapySpecial education schools
school assistant or classroom costsschool fees
Tutoring servicesDriver services for person with
Qualifying Expenses..some examples
Continence Products To support incontinence management ifperson is incontinent due to illness, injury oraffliction
Cathethers, trays, tubing,Diapers (nappies) disposable briefs, pads, linen and mattresssaversAnal irrigation kits (bowel management)
Service Animals Expenses related to service animal required Cost of animal specifically trained as an aidCare and maintenance (incl food and vet)
Alterations ormodificati to assetsacquired or to beacquired
Expenses incurred and paid for alterationsor modifications to assets to make themaccessible or usable by a person with aphysical impairment or disability
Exceptions:
Cost of vehicle, dwelling, pool, installinggate, security system, door, garage door, ordoor does not qualify for deduction
Power operated stairs/liftDrive-way accessElevators to enable access to different levels of a building, enteror leave a vehicle, or place a wheelchair on in a vehicleAlterations
Buying an installing outdoor rampsEnlarging halls and doorways for wheelchair accessLowering of kitchen or bathroom cabinetsBathroom aids to get in and out of bath/shower or on atoilet
Vehicle modificationsSecurity systems or modificationsSwimming pool modifications/alterations (eg rails/hoist)Garage doors, gates or doorways, automating of garage doors(only linked to moderate and severe mobility impairment eg.double amputee)
Summary of Expenses March 2016 to February 2017
Equipment for Special Needs Classroom R1 000,00Educational Aids R2 500,00Special Diet foods (Gluten Free Casein Free) R3 500,0Supplements R3 700,0Special Needs Tutor Fees R 1 000,00Special Needs School Fees R5 800,00Therapeutic Horse Riding R500,00
R18 000,00
Example of a Claim Summary
