What Medical Expenses Can You Claim on Your Taxes?
Navigating Tax Deductions for Medical Expenses in Canada
Have you ever wondered, “Can I claim prescriptions on my taxes?” The answer is yes! And there are many other medical expenses that the Canada Revenue Agency (CRA) allows you to claim.
Managing health conditions is challenging enough without the added burden of navigating complex tax rules. Understanding what qualifies as a deductible medical expense can significantly impact your tax return. While the CRA provides a broad list of eligible expenses, it’s important to know the details to maximize your benefits.
Which Medical Expenses Are Tax-Deductible?
The CRA allows a variety of medical expenses to be claimed. These include:
- Hospital and Nursing Care: Both public and private services.
- Health Insurance Premiums: Payments to private health-care plans.
- Prescription Drugs: Medications prescribed by a licensed professional.
- Medical Aids: Equipment like hearing aids, eyeglasses, and mobility devices.
- Dental Expenses: Costs for dental treatments and procedures.
- Travel Expenses: Costs for traveling to receive medical care, including mileage and accommodations.
The CRA emphasizes that the list isn’t exhaustive. If your medical expense isn’t listed, it might still qualify. To explore less-obvious deductible expenses, consult the CRA’s search feature or talk to your healthcare provider.
Can Medical Expenses Be Carried Forward?
Yes, you can carry forward medical expenses. If you have expenses from a previous year that you didn’t claim, you can include them in the following year’s tax return. However, they must fall within a 12-month period ending in the taxation year you’re filing.
For example, if you’re filing for 2023, expenses from January 2, 2022, to January 1, 2023, can be claimed. If you have expenses in 2023, choose the 12-month period that maximizes your total medical expenses for the best claim.
Can I Claim Medical Expenses for My Family?
Absolutely. You can claim medical expenses for:
- Immediate Family: Your children or stepchildren under 18.
- Other Dependents: Individuals who depend on you for support, including elderly parents or other relatives.
These expenses should be listed on line 33099 of your tax return. If claiming expenses for other dependents, use line 33199.
Who Should Claim Medical Expenses in a Couple?
Typically, it’s beneficial for the partner with the lower income to claim medical expenses. This strategy maximizes your tax refund potential.
If you claimed medical expenses or the disability supports deduction, you might be eligible for the medical expense supplement—a refundable tax credit for individuals with lower incomes and high medical expenses.
Is It Worth Claiming Medical Expenses?
Claiming medical expenses can reduce your tax burden, especially if they exceed the lesser of 3% of your net income or $2,635. With the option to carry forward some expenses, planning is crucial.
TurboTax simplifies this process with a built-in medical-expense worksheet, ensuring you capture every possible deduction and optimize your tax return.
By understanding what qualifies, keeping detailed records, and planning strategically, you can effectively manage your tax return and ease the financial burden of medical expenses.
Key Takeaways
- Claimable Expenses: Medical expenses not covered by provincial or private health-care plans can reduce your tax bill.
- Best Filing Practices: When filing jointly, claim medical expenses on the return with the lower net income.
- Documentation: Keep all medical receipts as proof, in case the CRA requests them.
