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
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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