Here’s How Tax Relief for Neurodivergent Kids Actually WorksIf you’re raising a neurodivergent child in South Africa, you’re already doing a lot.
Appointments. School meetings. Forms. “Can you just send that report again?” moments. The daily juggling act of home + school + therapy + life.
So when someone says, “You might be able to claim tax relief,” it can feel like one more admin mountain… right when you’re already running on fumes.
Here’s the good news: tax relief is available, and there’s a real framework designed to give families some breathing room.
The bad news is: it’s not always obvious how it works, and the internet is full of conflicting advice.
This guide will help you understand the basics without spiralling.
Tax relief is available in South Africa
South Africa’s tax system includes support for families who carry additional medical and care costs. The main mechanism is the Additional Medical Expenses Tax Credit (AMTC).
It’s not a cash payout. It’s a tax credit that reduces the amount of normal tax you pay.
For many families, it becomes a crucial “safety valve”, especially when you’re paying for the kind of support your child needs to function well in the real world.
Where neurodiversity fits into the SARS framework
SARS doesn’t have a neat category called “neurodivergence.”
Instead, conditions like Autism Spectrum Disorder (ASD), ADHD, and PDA are considered based on their functional impact, in other words, how much they limit day-to-day life.
For tax purposes, a “disability” is defined as a moderate to severe limitation in a person’s ability to function or perform daily activities (including learning, thinking, communicating).
If your child’s challenges create a moderate to severe limitation that is expected to last more than a year, your family may qualify for tax relief.
If the limitations are considered milder, the condition may fall under what SARS calls a “physical impairment.” (Despite the name, this category isn’t limited to physical conditions and can still apply in some neurodevelopmental contexts.)
Relief may still be available, but often with different thresholds and limits.
The common misunderstanding that trips parents up
One of the biggest myths is:
“If I have the diagnosis, we automatically qualify.”
Not necessarily.
SARS looks at whether the condition remains a significant limitation even after what it calls “maximum correction” (including appropriate therapy, treatment, or medication).
Because every child is different, eligibility is assessed case by case. Two families can have the same diagnosis and still have different outcomes depending on how the condition impacts daily functioning.
Which is frustrating, yes.
But also: it’s why getting clarity early matters.
Why paperwork and medical confirmation matter (even if you hate admin)
The admin requirements can feel like adding weight to an already heavy load.
But they’re also the keys to unlocking tax relief.
A diagnosis label isn’t enough. You need formal medical confirmation from a registered practitioner who is trained to give an opinion on your child’s condition.
The key document is the ITR-DD form (Confirmation of Diagnosis of Disability).
Whether this form is required in your situation can depend on how your child’s needs are classified (which is exactly where many parents get stuck).
Important: you typically don’t submit the form with your annual return, but you must keep it, along with invoices and proof of payments, for at least five years.
SARS often verifies these claims, so having your paperwork organised from the start protects you later.
Think of it like this: a few clicks to save documents today can save you hours of stress later.
You don’t have to figure it all out today
If this feels complex, you’re not meant to decode it alone in between lunchboxes and meltdowns.
So we created a simple starting point for parents:
✅ Download the tax relief cheat sheet at www.dalza.com/tax-relief-cheat-sheet/
A clear summary of what you need to know (and what to gather), without the jargon.
Supporting a neurodivergent child requires enough time, energy, and emotional bandwidth as it is. Tax admin shouldn’t be another thing you have to white-knuckle your way through.
Start with the cheat sheet.
Get the lay of the land.
And take it one step at a time.
👉 Download the free tax relief cheat sheet at www.dalza.com/tax-relief-cheat-sheet/
Disclaimer:
This content is provided for general information purposes only. It is not intended as legal, tax, or financial advice. Tax outcomes depend on individual circumstances, and eligibility for tax relief is assessed by SARS on a case-by-case basis. We recommend consulting a registered tax practitioner or qualified professional before submitting any tax claims
Parenting Hub is one of South Africa’s largest online lifestyle magazines, targeted toward Parents.
We understand that there are many aspects that encompass a Mother, Father or Child and strive toward providing resources and services that accommodates this.
Our content is aimed to inform and educate families on issues starting from pregnancy through to the challenges of the teen-age years.
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Making the most of time: To save for educationIf you’re planning to save for your child’s tertiary studies, doing so early is the best way to do it.
The exciting news of welcoming a child into the world changes your life, and time can go by so quickly. Planning for tertiary education costs early, will make all the difference to affording the best education and opportunities available.
You generally have at least 18 years to save towards university costs as a new parent. So, let’s assume for a 4-year bachelor’s degree, you’ll need as much as R85 000 per year for university tuition alone. This added up seems staggering, but will be more manageable to achieve over time, thanks to compound interest (provided you start saving early).
It is important to personalise your goals to know where you are going. One way is to define which university you are most likely to send your child to so that you can better quantify your savings goal. It might be difficult to picture it now, but this will allow you to more accurately ensure that your level of monthly savings matches the future costs of tertiary studies, to avoid a shortfall. It is important to note there is a large disparity between university costs in different provinces. The cost of residence or accommodation should you want your child to attend a university out of town should also be defined as this can be more than double the cost of tuition, which changes the savings requirement dramatically.
There are a few key savings vehicles to consider using for these savings:
1. Tax-Free Savings Account (TFSA).
This has the benefit of allowing you to save up to R36 000 per tax year (capped at R500 000 over your lifetime) without any taxation on the growth of the investment. So this mean you’ll pay no tax on interest, dividends or capital gains. This should be in your name and not your child’s, as you could be removing their right to have their own TFSA later in life, due to the contribution maximum limits.
2. Discretionary unit trust or ETF (Exchange traded fund)
This is similar to a TFSA, but without the tax benefits. This should be considered if you are already using a TFSA in your personal portfolio. An ETF is an alternative to a unit trust fund, and usually tracks an index.
3. Endowment / Sinking fund policy.
This should only be considered if you are already using a TFSA in your personal portfolio and your marginal tax rate is above 30%.
As it is estimated that education inflation runs at around 9% per year, it is imperative to invest your money in the selected vehicle above in a high-growth portfolio that will target long-term capital growth at inflation plus 5% to 7% per year. This type of mandate should invest the majority of your savings in local or offshore shares. As you will be investing monthly, you gain the benefit of rand cost averaging (averaging your entry into volatile stock markets), which will smooth your return over time.
As always this advice is assumptive and generic and you should always work with a Certified Financial Planner® to tailor a financial plan to your unique circumstances, and consider the appropriate investment mandate and tax structure that may impact you.
Alexi Coutsoudis, CFP at PSG Wealth Umhlanga Ridge
Parenting Hub is one of South Africa’s largest online lifestyle magazines, targeted toward Parents.
We understand that there are many aspects that encompass a Mother, Father or Child and strive toward providing resources and services that accommodates this.
Our content is aimed to inform and educate families on issues starting from pregnancy through to the challenges of the teen-age years.
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“Dad, do you have a spare R1.5m for me?”As a parent, one of the best gifts you can give your child is a solid education but do you have any idea about how much it will cost to fund this education down the line and can you start setting aside money for it?
Here is a quick example using the OUTvest Education Calculator, which is a popular tool with forward-thinking parents who want to ensure that they have set something aside for when their children need it.
If you have a child today and you want them to start a 4-year University degree on the 1st of January 2041, you will need to have saved up R1 586 000 to fund this degree. The assumptions here would be that you would start with a lumpsum of R10 000 and inflation was running at about 6%. It is also working on the assumption that you would not be setting aside any money for residence and your child would be living at home.
When you start seeing numbers like R1.5m, it can be incredibly daunting but a key message when it comes to saving is that compounding is one of the most powerful forces around and real wealth gets built when you stick to a plan.
Let’s break it down and assume that you start with R10 000. You will need to save roughly R1483 per month up-front. If we assume that you will be generating an average investment return each year and you will be increasing your monthly premium by 7% per annum in line with inflation, suddenly R1.5m doesn’t seem that far away.
The problem with theoretical calculations like this is that life invariably gets in the way and keeping up monthly contributions may not always be practical and this is where the OUTvest team have something quite novel to bring to young parents in the form of its Crowdvest functionality.
The Crowdvest offering allows people to contribute toward specific savings goals that other people have started. Taking advantage of the power of the crowd, you can then have friends and family contribute toward your savings goals and share the responsibility of helping your child get ready for university.
Giving your child the gift of a high quality education is one of the best ways you can set them up for success in the future and adopting a structured plan will take a big number like R1.5m and break it down into a bite-sized goal.
OUTvest is an authorised FSP. All investments are exposed to risk, not guaranteed and dependent on the performance of the underlying assets. The examples used are for illustrative purposes only and depend on various factors. T’s & C’s apply.
Parenting Hub is one of South Africa’s largest online lifestyle magazines, targeted toward Parents.
We understand that there are many aspects that encompass a Mother, Father or Child and strive toward providing resources and services that accommodates this.
Our content is aimed to inform and educate families on issues starting from pregnancy through to the challenges of the teen-age years.
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