What is medical tax credit?

I can not answer, but I expect it added tax Insurance located on the salary of the company, which provides health workers on

The concept is relating to insurance on Medical Requirements:

THIS IS ALSO KNOWN AS HEALTH COVERAGE TAX CREDIT:

The HCTC helped make health insurance more affordable for eligible individuals and their families by paying a significant portion of qualified health insurance premiums from tax years2002 through2013.  Information on who was eligible to receive the HCTC available generally.

Latest News

·         Tax Credit Expiration: The legislation that authorized the Health Coverage Tax Credit (HCTC)  has expired. The tax credit is not available for tax years after2013.Background and History of the HCTC:Described by some participants as “a lifesaver,” the Health Coverage Tax Credit (HCTC) was a federally funded tax credit that allowed individuals to pay only a portion of their qualified health insurance.  Nationwide, thousands of people were candidates for the program. Some of them were displaced workers who were certified by the Department of Labor as eligible to receive Trade Readjustment Allowances under the Trade Adjustment Assistance (TAA) program. Others were eligible because they received benefits from the Pension Benefit Guaranty Corporation (PBGC) and were55 years old or older. 

Congress understood that losing one's health coverage could be as distressing as losing one's job or having one's pension taken over.  The purpose of the HCTC was to make health coverage more affordable for these groups of people who otherwise might not be insured.  Please see below for a timeline of the HCTC Program.

• In2002, the HCTC began as a ground breaking tax credit program.
• In August2003, the HCTC was first made available on a monthly basis.
• In May2009, benefits were expanded as a result of the American Recovery and Reinvestment Act (ARRA).  These benefits were set to expire on December31,2010.
• In December2010, Congress passed a short term extension of the changes made to the HCTC by the ARRA.  These provisions expired on February13,2011. In October2011, benefits were once again expanded by the Trade Adjustment Assistance Act of2011.
• On January1,2014 the legislation that authorized the HCTC expired. This expiration date was set by Congress when the Trade Adjustment Assistance Extension Act of2011 was passed.

    Tax Credit Expiration: The legislation that authorized the Health Coverage Tax Credit (HCTC)  has expired. The tax credit is not available for tax years 

Medical Tax Credit impact both the employer and the employee. This credit must be taken into account by the employer when calculating the amount of Employees’ Tax to be deducted from the employees’ remuneration.

Medical Tax Credit is a rebate which reduces the normal tax a person pays. This rebate is non-refundable and can’t be carried over to the next year of assessment. In other words, this rebate will cut your normal tax to a lesser amount or nil, however it can’t create a negative amount.

Provides tax recognition for above the average medical expenses incurred by individuals.

agree with mr venkitaraman

Medical Tax Credit is a rebate which reduces the normal tax a person pays.

I think it is a tax advantage for what is paid to a medical insurance

Over the past two years, the tax benefits individuals enjoy for medical aid contributions and expenses, have gradually changed from a deduction to a tax credit system.

While the deductions for medical aid contributions have already been replaced with a medical credit system for most taxpayer categories, deductions for qualifying medical expenses will also be replaced with a credit system from March1 this year.

Wessel Smit, member of the South African Institute of Chartered Accountant's (Saica) national tax committee, explains that a tax credit reduces an individual's tax liability. This differs from a medical deduction, which lowers an individual's taxable income.

A medical tax credit allows all taxpayers the same benefit in rand, whereas a medical tax deduction is more beneficial to a taxpayer with a marginal tax rate of40% than someone who pays18%, he says.

The disadvantage is that if an individual's tax liability in a given tax year is not sufficient to utilise all the tax credits available, the benefit will be forfeited and not be carried over to the next year.

Credit on medical fund contributions

Tax credits on medical funds contributions were already introduced on March1,2012. Currently the credit is R242 per month for the main member and the first dependent and R162 per month for additional dependents, but it is likely to be adjusted for inflation from March1,2014, Smit says.

While the credit system has been in use for taxpayers younger than65 and taxpayers younger than65 with a disability or a disabled dependent, it will be applicable to all taxpayers - including taxpayers65 and older who contribute to a medical fund from March1,2014.

Other medical expenses

Up until the end of the current tax year (2014), taxpayers were entitled to a deduction for qualifying medical expenses (other than medical fund contributions) not recovered from the medical scheme. The deduction was determined using a specific formula in the Income Tax Act.

From March1,2014, this deduction will also be replaced by a credit, which will be more favourable to taxpayers who are65 years and older and taxpayers below age65 who are disabled or who has a dependent with a disability.

Smit says with regards to taxpayers younger than65, the credit for medical expenses will be determined as follows. The medical tax credit for12 months (with regards to medical aid contributions) will be multiplied by four and subtracted from the total medical aid contributions for the year. The qualifying medical expenses the taxpayer incurred during the year that exceeds7,5% of the taxable income will be added to this amount. This total will be multiplied by25% to derive at the tax credit for medical expenses.

For taxpayers65 years and older, or younger than65 but with a disability or a disabled dependent, the benefit will be much more substantial.

The medical tax credit for12 months will be multiplied by three and subtracted from the total medical aid contributions for the year. All qualifying medical expenses will be added to this amount. This total will be multiplied by33.3% to derive at the medical expenses credit.

In terms of the Income Tax Act, qualifying medical expenses include services rendered and medicines supplied by registered medical practitioners, as well as specialists and homeopaths, hospitalisation in a registered hospital or nursing clinic, home nursing by a registered nurse, midwife or nursing assistant, prescribed medicines from a pharmacist and medical expenses incurred and paid outside South Africa.

Medical tax credit refers to tax deductions (credits) allowed against medical aid contributions and expenses.

Two types of medical expenses qualify for a medical tax credit:

• Medical aid contributions 
• Qualifying out-of-pocket medical expenses 

However this may differ according to jurisdiction.