Not everyone has job with a great benefits plan that reimburses you for everything.
Some of us, including the self-employed, may not have secondary coverage at all.
And that means a lot of (or all) of our medical expenses come out of pocket.
There is relief come tax season, though.
You can claim a non-refundable tax credit for medical expenses, even if you incurred those costs outside of Canada. You can even claim the expenses for your spouse or common-law partner and children younger than 18 who are dependent upon you for support.
Here are a few important factors to note:
- If you have a drug plan, the portion that is not covered can be claimed
- The premiums you pay to a health plan are considered a medical expense
- The medical expenses can be claimed for any 12-month period ending in the current tax year
- You can carry over medical expenses from a prior tax year
- If you are claiming medical expenses for a deceased person, you can claim a 24-month period that includes the individual’s date of death (you must file a T1Adj in addition)
- Only expenses in excess of the lesser of $2,109 or three per cent of your net income can be claimed
The Canada Revenue Agency has a detailed list of what it considers eligible expenses. Check that list if you’re unsure that your expense fits the criteria. You can also check the list of what’s NOT elgible.
How do I claim medical expenses?
Once you’ve added up your medical expenses, enter them on Line 330 of your T1 income tax return. If you are claiming expenses for dependants, enter the total on Line 331.
If you’re filing electronically, keep all receipts and other documents in the event you are audited. If you’re filing a paper return, attach all documents and receipts (don’t forget to keep a copy for your own records).
Can you help?
We sure can. Contact one of our tax specialists and we can help you wade through the tax benefits and credits available to Canadians.
Fill out our contact form or give A1 Accounting a call at 403-226-8297.