Tax Relief on Home Care Costs
Could SARS help pay for part of your family’s care costs?
Many South African families don't realise that some professional home care costs may qualify for tax relief through SARS under the Medical Expenses Tax Credit.
In many cases, the person claiming the tax benefit does not have to be the person receiving care. A spouse, adult child, or another family member who pays for the care may be able to claim the qualifying expense, depending on their circumstances.
For qualifying disability-related claims, families may recover up to one-third of eligible care costs through their tax assessment.
Who may qualify?
Tax relief may be available for home care related to:
Dementia, Alzheimer's or Parkinson disease
A diagnosed disability or serious impairment
Stroke recovery or ongoing neurological conditions
Medically required post-operative care
Nursing care after hospital discharge
Certain frail care situations where supported by medical evidence
Who can claim?
Depending on the circumstances, the claimant may be:
The person receiving care
A spouse paying for the care
An adult child supporting a parent
Another family member who is financially responsible for the person's care
What care costs may qualify?
Qualifying expenses may include:
Professional home caregivers or nurses
Frail care and dementia care
Assistance with daily living (bathing, dressing, feeding and mobility)
Nursing services and medical supervision
A registered medical practitioner must confirm the medical condition. In disability-related claims, this is usually supported by a SARS ITR-DD form.
How does the tax benefit work?
The benefit is not a cash rebate. It is a tax credit that depends on factors such as:
Whether the person has a qualifying disability
The taxpayer's income
The taxpayer's age
Who is paying for the care
Where a qualifying disability exists, families may receive a tax credit of approximately 33.3% of eligible out-of-pocket medical expenses, including qualifying caregiver costs.
For people without a qualifying disability, the tax benefit is generally more limited.
Example:
If a family spends R15,000 per month on qualifying home care (R180,000 per year), and the patient qualifies as having a disability, the tax credit could be worth approximately R60,000, depending on the family's individual tax circumstances.
Can previous years be claimed?
In some cases, SARS allows reassessment of previous tax years (typically up to three years), provided the necessary documentation is available, including:
Professional invoices
Proof of payment
Medical documentation (such as the ITR-DD form where applicable)
Important:
Not all care costs qualify, and eligibility depends on each family's individual circumstances.
SARS considers factors such as:
The medical diagnosis and severity of the condition
Whether the care is temporary or long-term
Who pays for the care
Whether that person is a taxpayer
The dependant relationship
Supporting invoices and proof of payment
Medical reports and required SARS documentation
How Thrive at Home helps:
Thrive at Home provides professional home-based care together with clear, detailed invoices and service records that help families maintain the documentation often required when discussing potential tax claims with their accountant or tax practitioner.
While we cannot provide tax advice, we can help you understand the types of care services that may qualify and ensure you have the records needed should you wish to pursue a claim.
Please speak to a Tax Professional
Every family's situation is different. We recommend consulting a qualified accountant or tax advisor to determine your eligibility and the tax benefit that may apply to your circumstances.