Lupus Canada Advokit

Medical Expenses Deduction

It is also possible, in certain circumstances - for example, if they have not been reimbursed by an insurance company - to claim medical expenses as a deduction on one's federal income tax form. Unlike the Disability Tax Credit, the Medical Expenses Deduction does not require you to be disabled and is available to everyone. There is, however, a formula that must be used to determine an individual's Medical Expenses Deduction, which is described in detail in Canada Customs and Revenue Agency 's (CCRA) tax booklet.

In short, you can claim the lower of the excess of 3% of net income (line 236) or the amount in excess of $1813.00 (based on 2004) Deduction of this tax credit is made on an income tax schedule. Do not submit the receipts with your tax return. But you do need to keep all receipts and other proofs of purchase (credit card slips, insurance forms, etc.) related to treatment of your condition.4

For expenses to qualify for the Medical Expenses Deduction, it is not necessary that they have been paid or incurred in Canada.

The Income Tax Act describes expenses that may qualify for this deduction. They include:

· Payments to medical practitioners, hospitals;
· Care of an individual with mental or physical impairment;
· Care of an individual in a self-contained domestic establishment;
· Care in an institution;
· Transportation expenses;
· Artificial limbs, aids and other devices and equipment;
· Premiums to private health insurance plans.

· Reasonable expenses related to renovations and alterations to a dwelling;
· Expenses related to rehabilitative therapy;
· Preventive, diagnostic and other treatments; and
· Medications