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SERVING ONTARIO SINCE 1985

 

Medical Expenses

Total medical expenses are reduced by 3% of your net income. If your income is $30,000 per year, the first $900 is not eligible for refundable credits. You may, however, use any 12 months ending in the taxation year. So if you pay $400 for new glasses in August 2004 and have dental work of $800 in May of 2005, you could claim $300 ($1,200 - $900) and get a 22% credit against tax payable on your 2005 return.

Included in medical expenses are premiums paid for medical insurance, including travel insurance while outside of Canada or premiums paid for medical benefit packages through employment.

We often recommend that client bulk their medical expenses into a 12 month period where possible to maximize the credit. This can be particularly useful if you or a dependant require orthodontics or other amounts not covered by insurance plans. If it is all paid in a 12 month period, you may get some tax relief which will help to reduce your out of pocket cost!

Disclaimer: Given the complexity of tax legislation and the general nature of the following information, no action should be undertaken without appropriate due diligence. Neither AccuTax Financial Services Inc. nor R.D. (Ron) Van Rooyen accepts any contractual, tortuous or other form of liability for the content of this information or any consequences arising from its use.

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