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Medical Expenses

GENERAL

Starting in January 2019, medical expenses must be submitted to Sauve Tax Services as per the attached Medical Expenses Information Sheet.  Failure to do so may result in a $30+ surcharge.

Medical expenses are a great way to save taxes.  There are hundreds of qualifying expenses but here are just SOME of the most common: 

  • All Prescriptions
  • Fertility Drugs
  • Eyeglasses, contacts, eyeglass repairs, Laser Eye Surgery
  • Hearing Aids, batteries for Hearing Aids,
  • *Wigs, Prosthesis, Orthotics & *Special Shoes, *Support Hoses,
  • Incontinence products, all diabetic product (including wipes)
  • Massages, Physiotherapy, Vein Treatments, Vitamin Shots
  • Going out of town for treatments and appointments?  You can claim the mileage on your car and meals as long as you travel more than 80km round trip! (no receipts required but must have proof you went from either a Letter/Record Log from doctor/clinic/hospital).  Appointment cards are not proof that you attended an appointment and are not accepted.  You can also claim parking but need the actual receipts.
  • Lab Tests not covered by OHIP
  • Payment to Group Medical/Dental Insurance  (ie Sunlife) even if you make these weekly or monthly.
  • If you get reimbursed by a Group Medical/Dental Plan, you can claim the portion they don’t cover as well as any yearly deductibles
  • Travel Medical Insurance (if the insurance also includes cancellation & lost luggage insurance, it must be broken down as ONLY the Medical Insurance portion qualifies).
  • All Dental expenses (including Orthodontic work, dentures, oral surgery, braces)
  • *Gluten-free food due to Celiac disease (you can only claim the difference between the average price of a non-glutten free item and the glutten free item ie. if a regular loaf of bread is $2.50 and the same size glutten-free bread is $5.00, you can claim $2.50 – you must also keep all receipts) and this must be submitted to be as a total amount – I do not want to see receipts for any portion of this claim.
  • *Renovations or alternations to your dwelling to accommodate a disability (ie wheelchair access, bathroom aids such as support bars)
  • *Part of or all of the cost of an air conditioner, furnace, air purifier or water filter, if prescribed for chronic respiratory disease (BEWARE:  Salesmen will sometimes try to convince you that if you buy an Air Conditioner, Furnace, Pool, or Hot Tub, it can be written off on your Tax Return – THIS IS NOT TRUE – most of these are capped or cannot be claimed at all – Inform yourself before making a decision based on tax savings that are not real.)
  • Fee paid to a physician or specialist for completing forms.
  • Ambulance Charges, Charges for a Monitored Personal Alarm System
  • Electrolysis – only amounts paid to a medical practitioner
  • Holistic Treatments or Homeopathic services provided by a medical practitioner operating under the scope of their medical training – you can claim treatments but not the Holistic Products you purchase.
  • *Scooters, *wheelchairs, *canes, *walkers
  • *Physiotherapy or other therapies (ie speech)
  • For a more comprehensive list, visit the CRA website

*must be prescribed by a qualifying physician

Even though it sounds like you will reap thousands of dollars in tax savings when you add it all up, the sad fact is that you must first deduct 3% of your total income from your medical expenses before they count.  For example, a person making $30,000 must deduct $900.00 from their medical expenses before it counts.

Furthermore, medical expenses are non-refundable tax credits so if you had $2000 in medical expenses, and you deduct the $900.00, you would get 15% of the remaining $1,100 to make a big whopping $165.00.  Even if you do not pay taxes, unlike most non-refundable tax credits, you may qualify for the Medical Expenses Supplement by claiming medical expenses as long as you are under 65 – the supplement is not available to those 65 or older.

Also, the less income a person makes, the bigger the tax credit will be.  In the case of a married or common-law couple, it is more advantageous for the person with the lower income to claim all the medical expenses for the entire family.  STS has been applying this ‘Loophole’ automatically to make sure you get the biggest refund possible since 1994.

IF I DON’T HAVE ENOUGH MEDICAL EXPENSES TO CLAIM IN ONE YEAR, CAN I ACCUMULATE MY EXPENSES OVER THE YEARS?

Unfortunately, medical Expenses must be claimed in a 12-month period ending no later than December 31 of that taxation year so they cannot be saved and accumulated.

In some cases, let’s say that John got a pair of dentures ($4,000) in September 2020 and his daughter had braces ($9,000) put in July 2021; it is feasible to claim both on a 2021 income tax return as long as the 12 month period ends in 2021.   John will have to claim period (September to July) the following year.  Some careful planning can sometimes be beneficial.