Weekly Tax Tips
Claim Your Medical Expenses
Date: 28 Jan 2011
The federal medical expense tax credit recognizes the effect of above average specific medical and disability-related expenses on an individual’s ability to pay tax by providing relief equal to 15% of the eligible medical and disability-related expenses in excess of a threshold.
You can claim eligible medical expenses that you incurred for yourself, your spouse or common-law partner or your (or your spouse or common-law partner’s) children who were under age eighteen during the year who were dependent on you for support. For 2010, creditable medical expenses are reduced by the lesser of $2,024 or 3% of your net income for the year. The medical expenses must be paid within any 12-month period ending in the taxation year and you cannot claim expenses already claimed in a previous return. The CRA provides extensive details regarding the nature of expenditures that qualify as medical expenses.
In addition, if you paid medical expenses for a relative who was dependant on you, these expenses may also qualify for a credit. Except for children and grandchildren, the relative must be resident in Canada. The total of these expenses must exceed the lesser of $2,024 and 3% of the dependant’s net income for the year, up to a maximum of $10,000.
Note: Cosmetic procedures and related expenses qualify as a medical expense when incurred after March 4, 2010, only if they are required for medical or reconstructive purposes.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 28 Jan 2011.
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