You can claim on your personal tax return, eligible medical expenses for yourself, spouse and dependent children born after 1996, for any 12 month period ending in that tax year. The medical expense deduction on your tax return is in the form of a non-refundable tax credit, which is 20% of the eligible medical expenses that exceed the lessor of;
- $2,152, or
- 3% of your net income or your spouse’s net income.
Eligible medical expenses include a long list of medical expenses as well as dental care. A few of the more common medical expenses claimed are:
- fees to medical professionals including doctors, naturopaths and chiropractors,
- prescription drugs and lab charges,
- dental and orthodontic services,
- reasonable travel expenses to obtain medical or dental care, if travel exceeds 40 Km,
- extended health and dental plans,
- nursing home and attendant care charges,
- laser eye surgery,
- travel insurance and
- tutoring services for a documented learning disability.
Expenses you can’t claim include cosmetic procedures, teeth whitening, MSP premiums, fitness club fees, and over the counter medications, supplements and vitamins.
Canada Revenue Agency publishes on their website a list of deductible medical expenses.
For some taxpayers it is beneficial to report eligible medical expenses on a non-calendar year basis. For example, a taxpayer involved in a car accident in October that results in medical expenses, prescription drugs and physiotherapist sessions from the time of the accident till March, can chose to claim the eligible medical expenses on one tax return by electing to report their medical expenses for the 12 month period October 1 to September 30.
Towler & Associates is a North Vancouver accounting firm that strives to save our client’s money and that is why our firm motto is “We are in business to save you MONEY”.
This bulletin has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only and cannot be relied upon to cover specific situations. Please contact Towler & Associates to discuss your situation. The partners and employees of Towler & Associates do not accept any liability or duty of care for any action taken or not taken by anyone in reliance on this information.