SARS has very specific definitions for disability. Tax practitioner Lammert Stravast explains the terms in more detail
One of the most common questions I receive from families is a surprisingly difficult one: “Does SARS actually consider myself, my child or family member as ‘disabled’?” Many people assume the answer is obvious. If someone has a serious condition or requires ongoing therapy, surely that must qualify. However, in the tax world, things are not always that simple.
For medical tax purposes, SARS works with a very specific definition of disability. It is not simply about having a diagnosis or medical condition. Instead, SARS defines a disability as a moderate to severe limitation in a person’s ability to function or perform daily activities.
The limitation must last for more than a year and affect one of the following areas: Vision; Hearing; Communication; Physical mobility; Intellectual functioning; or Mental or psychological functioning. Just as important, this limitation must be confirmed by a qualified medical practitioner using a formal SARS document called the ITR-DD form. The ITR-DD form is valid for 10 years if the form was completed after 2023.
This is where many people are caught off guard. A diagnosis on its own is not enough. For example, a person may be diagnosed with a neurological condition, developmental delay or chronic illness, but if the medical practitioner does not confirm that the condition causes a moderate to severe functional limitation, SARS may not classify it as a disability for tax purposes.
This does not mean the condition is not real or significant. It simply means that, under tax legislation, it does not fall within the definition required to unlock the additional tax relief available to people with disabilities.
Another important distinction is between disability and chronic illness. Chronic conditions such as asthma, diabetes, high blood pressure or epilepsy may involve ongoing treatment and medical expenses. However, unless they result in a severe limitation in daily functioning, SARS generally treats them under the ordinary medical tax credit system, not the disability framework.
Why does this distinction matter? Because the tax benefits can differ significantly. When a person qualifies as having a disability under SARS rules, a much broader range of expenses can potentially be considered such as certain therapies, assistive devices, specialised schooling and home modifications. For families already navigating the financial realities of disability, this relief can make a meaningful difference.
Over the next few articles, we will explore some of these practical aspects in more detail, including the types of expenses that people often overlook, and the steps required to ensure claims are properly documented. For more information, contact me at info@yourdisabilitytax.co.za or visit our website www.yourdisabilitytax.co.za.
