One of the most overlooked non-refundable tax deductions is medical expenses. The majority of Canadians are aware that they can deduct part of their medical expenses, but many aren’t certain what they can deduct and how much they can deduct. Some don’t keep a running tally of their expenses because they don’t think it will save them money or because they don’t think it will.
Keep reading as we’ll go over what medical expenses are tax-deductible, what are the common types of expenses you can claim, and who you can claim them for.
Types of medical expenses that are deductible on a tax return
We understand that determining what medical expenses you can claim can be challenging. If you have eligible medical expenses, you can claim them on your tax return if they were:
- Paid by you or your spouse (common-law partners included).
- Paid in any 12-month period ending in 2021.
- Not claimed by you or by anyone else in 2020.
You can also claim all payments made, even if they were paid outside of Canada. Medical expenses can be claimed for any 12-month period ending in 2021 that you haven’t claimed in 2020.
You can claim all or part of your medical expenses that have not been reimbursed or won’t be reimbursed.
It’s important to check that your expense is tax-deductible in your province or territory. The Canada Revenue Agency (CRA) acknowledges that its list isn’t complete.
You can use the CRA Medical Expense Chart to look up a medical expense by name or to determine if you need a prescription.
Some common medical expenses can include:
- Prescription medication and drugs, although this doesn’t include over-the-counter medication.
- Amounts charged by medical practitioners (although the types of medical practitioners that qualify will vary depending on your province or territory, so double check on the CRA website).
- Bathroom aids (grab bars, grips, and rails).
- Hearing aids.
- Hospital care.
- Travel expenses to receive medical care outside your community if you travel more than 40 kilometers and the medical services are not available where you live.
- Insulin, needles, syringes to treat diabetes.
- Contact lenses, including equipment and materials for using contacts.
- Private health insurance premiums for medical care coverage.
- Medical Cannabis (the amounts paid for cannabis, cannabis oil, cannabis plant seeds, or cannabis products) if registered with a licensed supplier.
- Service animal costs which can include food and veterinarian care.
- Ambulance service to or from a public or licensed private hospital.
Commonly Missed Medical Expense can include:
- Birth control pills prescribed by a doctor.
- Renovation or construction costs to help with access or greater mobility within one’s home, but certain conditions apply.
- Cosmetic and plastic surgery that is reconstructive or medical in nature (for example, artificial teeth, nose reconstructive surgery if resulting from an accident or disfiguring disease).
- Appliances like a furnace or air conditioner where it is prescribed because of a severe chronic respiratory ailment or immune system disorder.
- Gluten-free products for those with celiac disease.
- Tutoring for children with disabilities.
- Prescription sunglasses.
It’s worth remembering that you’ll need to keep your receipts when claiming these expenses. If you file a paper tax return, you must include your receipts. However, if you file online, it’s a good idea to keep all of your receipts in case the CRA needs them at a later date.
Who can I claim medical expenses for?
You can claim medical expenses for:
- Yourself
- Your spouse or common-law partner or
- Your or your spouse’s children under the age of 18
- Other relatives who depend on you for support
a) your or your spouse’s or common-law partner’s children who were 18 years of age or older at the end of the tax year, or grandchildren
b) your or your spouse’s or common-law partner’s parents, grandparents, brothers, sisters, aunts, uncles, nieces, or nephews who were residents of Canada at any time in the year
Still have questions about medical expenses or need help filing? We’re here to help!
