Last updated: Aug. 23, 2013
A great way to save money on your tax bill is to submit a medical expense claim.
The rules regarding qualifying for a non-refundable medical tax credit as outlined by Canada Revenue Agency (CRA) are pretty straightforward.
Criteria for Claiming a Medical Expense on Your Taxes
- The medical expense must have been paid within any 12-month period ending in the calendar year for which you’re filing.
- You must have supporting receipts.
- The receipt must not have been used in calculating a previous year’s credit.
- It must not have been reimbursed or be reimbursable (by an insurance company, for example).
- It must also put you over your claim threshold.
In claiming a federal credit, your total eligible medical expenses first must be reduced by the lesser of two amounts:
- The lesser of 3% of your net income or $2,109 (for 2012 tax year) and $2,152 (for 2013 tax year)
The tax credit is 15% of the amount remaining. A similar calculation applies for the provincial part of the credit.
Additionally, the CRA provides very thorough lists of medical expenses that qualify—and ones that don’t qualify—for the non-refundable medical tax credit.
However, be aware that, like with other expense claims, the rules are open to interpretation.
Check out this helpful knowledge centre article, which provides some very illuminating examples to help you submit a successful medical expense claim.