As the next tax season approaches, organizations can empower their employees to become savvy health care consumers and taxpayers by informing them about medical expense tax credits. Canadians can save money by claiming most medical expenses that are not covered under their provincial health plan on their yearly tax forms. Although not all information out there is reliable, members with access to health navigation via web, mobile, and call centre support can rest assured they will find trusted, up-to-date information on ways to manage and reduce health care spending, including resources to learn more about related tax credits.
What you need to know to save
Everyone should pay their taxes, but nobody wants to pay more than they have to. Tax credits for medical expenses are available for individuals, their spouse or common law partner, as well as their eligible dependents. Keeping a record of your medical expenses may add up to worthwhile savings during tax season.
Below are a few examples of expenses that may be eligible for tax credits (if you have not already claimed them on private insurance, that is):
- Dental care
- Glasses and contact lenses
- Care from allied health providers (e.g., physiotherapists, chiropractors, massage therapists)
- Prescription drugs
- Hearing aids and other medical devices
- Assistive devices (e.g., walkers and wheelchairs)
- Home renovations to accommodate a disability
Find a complete list of eligible medical expenses on the Canada Revenue Agency website.
If you have a condition that affects your daily living activities (e.g., walking, dressing, feeding), you may also be eligible for a disability tax credit. Families can claim other expenses, such as the child care expenses, and the child disability benefit as long as they meet the eligibility criteria.
Where to find relevant information
However well-intentioned it may be, information from friends and loved ones may not be all that reliable. Always verify helpful tips by checking government sources, and stay up to date on any changes related to which medical expenses are and aren’t eligible. After all, it is your hard-earned money you are trying to save! The Canada Revenue Agency’s website is your best bet for accurate information. They also provide a list of phone numbers for specific tax-related questions.
Other things to know
- Hang on to all health-related receipts. Be systematic about keeping your medical receipts in a safe place. Find a convenient location for storing them all together (e.g., file folder, small box, Tupperware container). This way, when tax season rolls around, you will have one less thing to worry about.
- Request a print-out of eligible prescription medications. For eligible drug expenses, your pharmacy can often provide you with a print-out of what you were prescribed over the year.
- Sometimes medical expenses can be carried over from one year to the next. Medical expenses may be claimed for any 12-month period ending in the year in question. It may be more advantageous, for example, to go from June to May, when totalling up your medical expenses.
- Save your private health insurance statements. If you have private health insurance, any portion of a medical service that is not covered may also be eligible. This means that if 80% of dental costs are covered by your insurer, you may be able to claim a tax credit on the remaining 20%. Make sure to add your reimbursement statements to your file as well.
As you can see, tax season doesn’t have to be all bad! Most medical expenses can be claimed on your income tax form. Although doing your taxes may seem like a lot of work, make the effort and include all eligible medical expenses on your form. Next tax season, you might be surprised to see a little extra work really does go a long way!
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Key Website
The Canadian Revenue Agency: Lines 330 and 331 – Eligible medical expenses you can claim on your return
