Tax rules, thresholds and administrative procedures can change. Confirm current official requirements and obtain advice for material transactions or unusual facts.
The payer is not always the claimant
Eligible medical expenses for a taxpayer, spouse and certain dependants can often be combined under the rules. The family should compare claims rather than assuming the person whose card paid the bill must claim it.
Income-based threshold
The medical credit is generally based on eligible expenses above the lesser of a fixed annual amount and a percentage of net income. This can make the lower-income spouse a better claimant. However, that spouse must have enough tax payable to use a non-refundable credit.
Example
A couple has $6,200 of eligible medical expenses. One spouse has net income of $42,000 and the other $118,000. The lower-income spouse may have a smaller threshold, producing a larger qualifying amount.
Before choosing, they compare federal and provincial credits and confirm that the lower-income spouse has sufficient tax payable.
Choose the 12-month period
The claim can generally use any 12-month period ending in the tax year, provided the same expense was not previously claimed. A family with a major procedure in February might compare a March-to-February period with the calendar year.
Reimbursements and insurance
Only the unreimbursed portion is generally eligible. Keep insurer statements showing amounts paid and denied. Travel, attendant care, fertility treatment and renovations have additional conditions and documentation.
Dependants
Claims for adult children, parents or other dependants can use different calculations and dependency facts. Record who paid the cost and why the person was dependent for support.
This article provides general Canadian tax information and is not a substitute for tax, legal, financial or investment advice based on complete circumstances.