In this bulletin:

    * Out with the old definition of 'handicap'...
    * ...and in with the new
    * One one condition
    * Who qualifies for relief?

Now this is good news!

This past week, SARS announced that it’s expanded its definition of the term ‘handicap’ (with effect from 1 March 2009). People with disabilities (or those who care for them) will be able to claim significant tax deductions on their medical expenses.

Out with the old…

Under the old definition, SARS recognised only five disability groups: people who were:
–    Blind
–    Deaf
–    Required an artificial limb (or a prosthetic)
–    Required a wheelchair, caliper or crutch
–    Those who suffer a mental illness.
 

…And in with the new

The new definition of disability refers to any impairment that prevents the sufferer from performing daily activities. This includes diseases of the liver, kidneys, heart and lungs. It also includes HIV/Aids, diabetes, and diseases like Alzheimers and Parkinson’s disease.

There’s just one stipulation….

On one condition

Tax relief is available to sufferers of these medical conditions, as long as the sufferer has had the condition for a year or more (or will suffer with it for more than a year). A sprained ankle or broken limb doesn’t count!

Remember: You have to provide proof, by means of a diagnosis, made by a medical doctor.

Who qualifies for relief?

Taxpayers who pay the medical expenses (be it for their own disabilities, or for those of their immediate family and dependents) will get deductions on the medical expenses as well as on any expenses incurred by the disability (such as remedial classes, therapy, etc).

I’ve already sent this news to my mom, whose dearest friend suffers a form of epilepsy so debilitating, she’s booked off from work two days out of five (and her small business is suffering big time!). At least she can now start claiming tax deductions, and find financial relief.

Until next week

Fulvia Becatti
Managing Editor: Practical Tax Handbook and Practical Vat Handbook