When it comes to tax time, many taxpayers may overlook potential tax credits that could reduce their tax liability. One such tax credit is related to medical expenses. 

If you have incurred costs related to your health or wellness, you could be missing out on potential savings. The good news is that the Canada Revenue Agency (CRA) allows you to claim medical expenses when filing your personal income taxes. Here’s how you can take full advantage of this opportunity.

What You Can Claim

You may claim a wide range of medical expenses for any 12-month period ending in that tax year. Here are some common and sometimes overlooked eligible medical costs you can claim::

• Prescription Medications: Medicines prescribed by a licensed healthcare provider. 
• Dental and Vision Care: Expenses for dental work (e.g., fillings, braces, cleanings) and vision care (glasses, contact lenses, eye surgeries) are eligible.
• Medical Devices & Equipment: Equipment like hearing aids, wheelchairs, prosthetics, and oxygen equipment may qualify. Consult the CRA list to ensure your claim is allowed.
• Health-Related Travel: If you need to travel more than 80 km for medical treatment, you can claim the transportation, meals, and accommodation costs.
• Alternative Treatments: If prescribed by a healthcare professional, treatments like acupuncture, chiropractic services, and massage therapy may be eligible 
• Gluten-Free Products: If you have a medically diagnosed condition that requires a gluten-free diet, the CRA allows you to claim the additional cost of gluten-free food over the regular price.

Who Can You Claim For?

You can claim medical expenses not just for yourself, but also for:

• Your spouse or common-law partner.
• Dependent children under the age of 18.
• Other family members you support financially, such as parents or grandparents, who live in Canada.

How to Calculate Your Claim

Here’s how it works:

1. Total your eligible medical expenses.
2. Subtract the threshold (the lesser of 3% of your net income or a fixed amount, which for the 2024 tax year is $2,759).
   • 3% of your net income, or
   • A fixed amount for the year (for CRA’s Medical Expense 2024, this threshold is $2,759).

For example, if your net income is $50,000 and you spent $5,000 on medical expenses, you can only claim $3,500 because the CRA will subtract 3% of $50,000 ($1,500) from your total medical expenses of $5,000.

Of your claim, you will get a 15% federal tax credit.

Maximizing Your Claim

If you’re married or living with a common-law partner, it might be better for the lower-income partner to claim the medical expenses. This is because the amount you can claim is reduced by 3% of the lower income, which could allow for a larger claim.

Record Keeping

Save all receipts! The CRA may request them as proof, and organizing receipts throughout the year will save time during tax season. Remember, you can only claim the portion you paid out of your pocket.

Key Takeaways

By knowing what counts as an eligible medical expense and how to calculate your claim, you can ensure you’re getting the maximum possible tax benefit from your medical costs.

Working with a tax professional could help ensure you make the most of your medical expense deductions and do not miss out on any opportunities for potential savings.