Was wondering if anyone has any experience with making their spouse the Primary Member for the medical aid to optimise for the "Qualifying Medical Expenses"?
Is there any rules according to SARS regarding who the primary member should be? I am considering making my spouse the primary member as their taxable income is far less at the moment, so the 7.5% tax income threshold to quality for out-of-pocket medical expenses is far lower.
From my calculations, if you have a total medical aid contribution of R5000 p/m (hospital plan - 2 adults) and are earning less than R335k p/a you then all your out-of-pocket expenses qualify for "Qualifying Medical Expenses for Tax".
5000*12 - 4*(364+364)*12 - 335000 * 7.5% ~= 0
Effectively, you save 26% on all medical expenses given the >= 237 101 income bracket.
Is there any rules according to SARS regarding who the primary member should be? I am considering making my spouse the primary member as their taxable income is far less at the moment, so the 7.5% tax income threshold to quality for out-of-pocket medical expenses is far lower.
From my calculations, if you have a total medical aid contribution of R5000 p/m (hospital plan - 2 adults) and are earning less than R335k p/a you then all your out-of-pocket expenses qualify for "Qualifying Medical Expenses for Tax".
5000*12 - 4*(364+364)*12 - 335000 * 7.5% ~= 0
Effectively, you save 26% on all medical expenses given the >= 237 101 income bracket.