Area of Law: Tax Law
Answer # 1704
Medical Expense Tax CreditRegion: Ontario Answer # 1704
What are medical expense tax credits?
The Medical Expense tax credit is s federal tax credit that helps individuals cover the cost of eligible medical expenses. By claiming eligible medical expenses on your income tax return, you can reduce the amount of tax you have to pay.
There are two federal medical expense tax credits you may be able to receive:
- The disability supports deduction is for expenses related to impairment in physical or mental functions.
- The refundable medical expense supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses.
When can you claim medical expenses?
You can claim eligible medical expenses only if you, your spouse or common-law partner:
- paid for the medical expenses in any 12-month period ending in the year you are claiming them for, and
- did not claim them on the previous year’s tax return.
Who can you claim expenses for?
On line 33099 of your tax return, you or your spouse or common-law partner can claim expenses paid for:
- yourself, your spouse or common-law partner, and your or your spouse’s or common-law partner’s children who were under 18 years old at the end of the tax year
On line 33199 of your tax return, you or your spouse or common-law partner can claim expenses paid for the following other dependants:
- your or your spouse’s or common-law partner’s child who were 18 years old or older at the end of the tax year, or grandchild
- your or your spouse’s or common-law partner’s parents, grand-parents, brothers, sisters, aunts, uncles, nieces, or nephews who were residents of Canada at any time in the year.
How much can you claim?
In most cases, you can claim the total amount of the medical expense (even if it was not paid in Canada). However, you can only claim the part that has not been reimbursed, as might be the case if you have insurance coverage that reimburses you for a percentage of the expense.
The maximum amount that can be claimed for medical expenses is the lesser of 3% of your net income, or $2,352 for the 2019 tax year. In 2020 the maximum amount has been set at $2,397. CRA uses these amounts to calculate what your credit will be.
What medical expenses are eligible?
The types of medical expenses that can be claimed are extensive, and includes a large variety of services, equipment, and medications. Visit Canada Revenue Agency to view a complete list of the types of medical expenses and if the expense is eligible. CRA will also tell you if you will need to provide any documents to support your claim. This may include:
- certification in writing provided by a medical practitioner, or
- Form T2201, Disability Tax Credit Certificate
For more information on the Medical Expense tax credit, refer to Canada Revenue Agency. For information on similar provincial tax credits or benefits that may be available, visit the Government of Canada website.
For legal advice and assistance with tax planning, a CRA tax dispute, or other tax issues, contact Tax Chambers LLP
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