One of the most overlooked nonrefundable tax deductions is the medical expense tax credit. The majority of Canadians know about the medical expense tax credit, but many fail to keep receipts or keep up with their expenditures.
In addition to your spouse and common-law partner, you can claim this tax credit for your kids under 18. Additionally, medical expenses can be claimed by your spouse, if you have one, and your common-law partner. In addition to parents and grandparents, siblings, aunts, uncles, nieces, and nephews may be eligible to receive benefits.
The government of the country provides a portion of the credit in the form of a tax credit, and one small portion is provided by the government of the province or territory. To get a non-refundable tax credit in your home province or territory, use line 58689 of Form 428 to write down the amount.
Allowable Deductions
A list of allowable deductible expenses has been compiled by the Canada Revenue Agency (CRA). These items are not exhaustive and may include:
- medicines that are prescribed.
- premiums for health insurance.
- A prosthetic limb
- The air conditioning system
- Bathroom accessories
- monitors that monitor the baby's breathing.
- Assistive devices
- control systems for the environment.
- Use cannabis as a medicine.
- Animals that provide service.
- Oxygen supplies
- Reconstructive or medical cosmetic and plastic surgery: artificial teeth, reconstructive surgery on the nose, etc.
- Obtaining cancer treatment outside of Canada with the assistance of a licenced physician
- Speech synthesizers, bliss boards, and other communication aids facilitate communication between people.
- For individuals with celiac disease, the cost of buying gluten-free food is
- Coupler acoustic.
- doctor-prescribed birth control pills.
- The treatment of drug addiction, including boarding and meals at a drug rehab facility,
- A peripheral computer is one that is specifically designed to enable a blind person to operate a computer independently.
- Treatment of blood circulation problems with elastic hosiery
- When a procedure such as Lasik or a similar procedure is not performed only for cosmetic reasons, such as eye surgery,
- Fees paid for the authorization of mental illness treatment
- Payments in advance for lifelong care
- Travel expenses for medical care received in a hospital or clinic away from home.
- Insuring long-term care and the costs associated with it The amount of the deduction is subject to certain limitations, however.
- Indemnities for moving costs for people who have severe and long-term mobility problems who need to move to more accessible housing (limit of $2,000 per person).
- Providing nursing care
- The total cost of the medical care in the nursing home, as well as meals and lodging, if the primary reason for the resident's presence is to receive medical care.
- Orthopedic footwear, boots, and inserts are available.
This list is accompanied by the supporting documentation that is necessary to enable you to claim the deduction. In addition, receipts, prescriptions, mileage records, and proof of disability should be submitted.
Using your tax return to claim medical expenses:
- Line 33099 of your tax return is the appropriate place to make a claim for expenses incurred by you and your spouse, common-law partner, or dependent child under the age of 18.
- These expenses can be claimed on line 33199 if they pertain to another dependent.
Dependents eligible for benefits include:
- A child or stepchild who is 19 years of age or older will be
- The grandchildren
- Grandparents
- Sisters or brothers?
- Uncles, aunts, nieces, and nephews
If your tax year ends in a tax year, you can use any 12-month period that was incurred during that period. If you have already claimed a medical expense in the past, you cannot claim it this year. All members of a family must share the same start and end date. So long as the last date of the tax year ends in the tax year, you are able to claim the medical expenses you could not claim last year.
Deductions that are ineligible:
On the CRA website, you can find a number of deductions that are not eligible for the medical expense tax credit. Among these are:
- Medication is available without a prescription, even over-the-counter.
- clubs that offer fitness facilities.
- Surgical cosmetics
- Premiums for health plans
- Diaper service providers
- Personalized response systems
It is not a violation to include them. The cost of these items is not deductible, so the CRA will reject these claims. The list has some exceptions that might keep it from being rejected. Reconstructive surgery, for example, may be required to fix a specific flaw, accident or disease, so it may be OK to pay for it.
Filling out the form
In your return, you can put in how much you or your spouse paid for eligible expenses. The tax credit is calculated by dividing the lesser of the percentage or the amount of the credit by the lesser of the two. Consider comparing your returns with those of your spouse or common-law partner. In some situations, it may be more beneficial to let the person claim credit than to take it on your own.
If you claim medical expenses on line 33099, your tax deduction will be reduced by the lesser of 3% of your taxable income or the threshold for the tax year (which varies each year). 3% of the dependents' net income or the year's threshold should be applied to the medical expenses claimed for others online at 33199.
Ensure that the amount is also claimed on the provincial or territorial form. Similar methods are used to calculate and apply the credit.
Filing your return by electronic means or through the mail
- Keep all the supporting documents together if you file electronically, so that you can provide them to the CRA should they ask for them.
- Include all supporting documents, such as social security numbers, with your return if you are filing by mail.
Medical costs for disabled people
The Disability Tax Credit (DTC) can be claimed if you have an approved T2201 form from the Canada Revenue Agency. Also, all medical costs incurred by people with chronic medical conditions are eligible for reimbursement. The medical expenses that can be reimbursed under this credit are the following:
- Expenses associated with attendance care exceed $10,000.
- Expenses associated with nursing home
For the best tax savings, you should figure out how much money you'll get back on your medical expenses with and without claiming the DTC.