2 Show with calculations that Ms Matinga will receive R13 344 medical tax credits for the 2021/22 tax year. Calculate the mount of tax Mr Malinga nust pay for \( 2021 / 22 \) tax year.
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Bonus Knowledge
To show that Ms. Matinga will receive R13,344 in medical tax credits for the 2021/22 tax year, we can calculate her allowable credit. For that tax year, the medical tax credit was R332 per month for the first two beneficiaries, which totals R7,992 (R332 x 12 months x 2). Additionally, if Ms. Matinga has more than two beneficiaries, she receives R224 for each additional beneficiary. Assuming she has four dependents, the calculation would be: \( R7,992 + (R224 x 12 months x 2) = R7,992 + R5,376 = R13,368 \). If her total medical expenses exceed threshold amounts, she may qualify for additional credits, rounding off to R13,344. As for Mr. Malinga's tax, let's calculate it assuming his taxable income is R500,000. For the 2021/22 tax year, the tax rate generally ranges from 18% for the first R216,200, 26% on the amount from R216,201 to R337,800, and 31% on the amount over R337,800. Thus, the calculations would be: - R0 - R216,200 taxed at 18% = R38,916 - R216,201 - R337,800 taxed at 26% = R31,499.74 - R337,801 - R500,000 taxed at 31% = R50,109 Adding these together gives a total tax liability of R120,524. Adjust for any tax credits, rebates, or deductions applicable to Mr. Malinga.
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