How Parents Can Claim Additional Medical Expenses Tax Credit for Children with ADHD, ASD, and Other Neurodiverse Conditions

Parents of children with Attention Deficit Hyperactivity Disorder (ADHD), Autism Spectrum Disorder (ASD), or other neurodiverse conditions often face significant medical and educational costs. In South Africa, the Additional Medical Expenses Tax Credit (AMTC) can provide financial relief by allowing taxpayers to claim certain qualifying medical expenses that are not covered by medical schemes. This step-by-step guide explains how parents can claim the tax credit and what documentation is required.

Understanding the Additional Medical Expenses Tax Credit (AMTC)

The AMTC is a tax rebate designed to help individuals who incur medical expenses for themselves or their dependants. It applies to out-of-pocket medical costs related to disabilities or physical impairments. Unlike medical scheme contributions, which are covered under the Medical Schemes Fees Tax Credit (MTC), the AMTC is aimed at additional medical expenses not reimbursed by a medical scheme. This credit reduces the amount of tax payable rather than providing a refund.

For the purposes of the AMTC, expenses must meet the following criteria:

• Necessary for the treatment of a condition
• Directly related to a physical impairment or disability
• Not recoverable from a medical scheme

More information on the AMTC is available from SARS: SARS Additional Medical Expenses Tax Credit.

Is ADHD and ASD a Qualifying Disability?

The South African Revenue Service (SARS) defines a disability as a moderate to severe limitation of a person’s ability to function or perform daily activities due to a physical, sensory, communication, intellectual, or mental impairment. This condition must last or be expected to last more than a year.

ADHD and ASD may qualify as disabilities if a registered medical practitioner confirms that they substantially limit a child’s ability to function in everyday life. The severity of the condition will determine whether SARS accepts it as a qualifying disability.

The SARS guide to qualifying disabilities and expenses can be found here: List of Qualifying Physical Impairment or Disability Expenditure.

Steps to Claim the Tax Credit

Step 1: Obtain a Diagnosis and Medical Confirmation

A formal diagnosis from a registered medical practitioner is required to confirm the child’s condition. This documentation should:

• Clearly state the diagnosis (e.g., ADHD or ASD).
• Explain how the condition substantially limits the child’s daily activities.
• Indicate that the condition has lasted or is expected to last more than 12 months.

Step 2: Complete the ITR-DD Form

The ITR-DD form is essential for claiming the AMTC for a disability. This form must be completed by:

• The taxpayer (parent/guardian) who is claiming the credit.
• A registered medical practitioner who will assess and certify the severity of the condition.

The ITR-DD form serves as an official declaration of the disability for tax purposes. It must be submitted along with the annual tax return.

Download the ITR-DD form here: ITR-DD Form.

Step 3: Identify Qualifying Medical Expenses

SARS recognises a range of medical expenses related to disabilities, provided they are essential for the treatment or management of the condition. Parents of neurodiverse children may be able to claim for:

• Therapy sessions (occupational therapy, speech therapy, psychological therapy).
• Specialised educational support (remedial teaching, private tutors for special needs children).
• Assistive devices and technology (communication aids, sensory tools, adaptive learning devices).
• Medical practitioner consultations (neurologists, psychiatrists, paediatricians, psychologists).
• Prescription medication for managing symptoms of ADHD, ASD, or related conditions.
• Travel costs for medical appointments if not covered by a medical scheme.

A full list of qualifying expenses can be found in the SARS guide: SARS Medical Tax Credits.

Step 4: Maintain Detailed Records

Parents must keep all supporting documentation for their medical expenses, including:

• Invoices and receipts for therapy sessions, medication, and assistive devices.
• Proof of payment (bank statements, medical aid statements, EFT records).
• Medical reports and letters from specialists confirming the necessity of the expenses.

These documents are crucial in case SARS requests verification.

Step 5: Submit Your Tax Return

When completing your annual tax return (ITR12), include the total amount of qualifying medical expenses under the relevant section for disability-related costs. Ensure that the information matches the supporting documentation and the ITR-DD form.

SARS will calculate the tax credit based on the information provided. If the disability claim is accepted, the taxpayer will receive a reduction in their taxable amount.

Step 6: Retain Documentation for SARS Verification

SARS requires taxpayers to keep all supporting documents for at least five years. These may be requested for audit purposes to confirm the validity of the claim.

Frequently Asked Questions (FAQs)

1. Can I claim for my child’s school fees if they attend a special needs school?

Yes, but only if the school provides specialised remedial education necessary for managing the child’s condition. A medical practitioner must confirm that mainstream schooling is not suitable.

2. What if my claim is rejected?

If SARS denies your claim, you can:

• Request a review and submit additional medical evidence.
• Appeal the decision within the SARS dispute resolution process.

3. Can I claim if my child does not have a formal diagnosis?

No, a formal medical diagnosis is required. The ITR-DD form must be completed by a qualified practitioner to validate the claim.

And so…

Claiming the Additional Medical Expenses Tax Credit (AMTC) for children with ADHD, ASD, or other neurodiverse conditions can significantly ease the financial burden of medical and educational expenses. By following the correct procedures, maintaining detailed records, and obtaining the necessary medical certification, parents can successfully claim tax relief.

For more information, visit the SARS website: SARS Additional Medical Expenses Tax Credit.