Haris Ashley
In Canada, you may be able to claim medical insurance premiums and eligible medical expenses on your taxes. The Canada Revenue Agency (CRA) considers premiums payable to an insurance company to be deductible, including your premiums for your personal health insurance policy that covers you, your spouse or common-law partner, or your eligible dependents. You can only claim the portion of the premiums you pay yourself, not any amount covered by your employer. Eligible medical expenses include a wide range of medical, dental, and vision-related costs, as well as travel expenses for medical services and laboratory tests prescribed by a doctor. It is important to keep all your receipts and proof of payment in case the CRA requests them during an audit.
| Characteristics | Values |
|---|---|
| Claiming medical insurance on taxes | Possible |
| Who can claim | You, your spouse or common-law partner, or your minor children |
| What can be claimed | Medical, dental, and hospitalization expenses; premiums paid for health insurance |
| Requirements | Receipts for all expenses; proof of payment |
| Additional requirements for specific cases | For attendant care, the receipt must include the individual's social insurance number; for claiming amounts for a dependent who is 18 or older, proof of support may be required |
| Time period for claiming expenses | Any 12-month period ending in the tax year |
| Calculation of claim amount | Total expenses paid minus 3% of net income or $2,759, whichever is less |
| Claiming expenses for dependents | Expenses for dependents under 18 can be combined with the claimant's expenses; expenses for dependents over 18 must be calculated separately |
| Eligible expenses | Ambulance services, laboratory tests, dental treatments, vision-related expenses, medical devices, fertility treatments, travel expenses for medical services, accommodation and meal expenses for travel over 80km one way, costs of special diets prescribed by a doctor |
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What You'll Learn
Claiming medical insurance premiums
When it comes to filing your income taxes, determining what can and cannot be claimed as a medical expense can be challenging. However, it is important to know that you may be eligible to claim the premiums you pay for your health insurance. This includes premiums paid for yourself, your spouse or common-law partner, or your minor children. To qualify, the coverage must relate to medical, dental, and hospitalization expenses eligible for the Medical Expense Tax Credit. It can also offer limited coverage for some non-eligible benefits.
You can only claim the portion of the premiums you pay yourself. Any amount covered by your employer cannot be claimed by you but can be claimed by your employer. You can claim the premiums you pay for your health insurance on lines 33099 and 33199 of your return. You will need to keep your premium receipts to prove the amounts you paid in the event of a CRA audit.
The CRA considers private health services plan (PHSP) premiums payable to an insurance company to be deductible and can include premiums for your personal health insurance policy. This includes premiums paid for yourself, your spouse or common-law partner, or your eligible dependents.
There are a variety of medical expenses that can be claimed on your tax return. This includes prescriptions, dental treatments, expenses for maintaining or improving vision, medical devices, and medical treatments such as physiotherapy, psychotherapy, and chiropractic care. You can also claim the costs of ambulance services if you had to be transported to or from a hospital for emergency care. If your doctor has prescribed a special diet for a medical condition, you may be able to claim the additional costs of purchasing those foods.
It is important to keep all your medical receipts and supporting documents in case the CRA asks to see them later. Receipts must show the name of the company or individual to whom the expense was paid, the purpose of the payment, the date of payment, the name of the patient, and the medical practitioner who prescribed the service.
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Claiming medical expenses
When it comes to filing your taxes, it can be challenging to determine what can and cannot be claimed as a medical expense. However, it is essential to understand the eligible expenses to ensure you don't miss out on valuable deductions that could reduce your tax bill. Here is a detailed guide to help you navigate claiming medical expenses on your taxes in Canada.
Eligible Medical Expenses:
Firstly, it's important to note that you can generally claim all eligible medical expenses that you, your spouse, or common-law partner have paid within a specific 12-month period. This period can be the calendar year (January 1 to December 31), or you can choose any other consecutive 12-month period that works best for you. For example, if you have significant medical expenses in a particular month, you can choose a 12-month period that includes that month to maximize your claim.
Eligible medical expenses cover a wide range of areas. Here are some common categories:
- Dental treatments: This includes fillings, root canals, braces, dentures, and teeth cleaning.
- Vision care: Expenses related to maintaining or improving vision, such as eye exams, glasses, contact lenses, and eye laser surgery, are eligible.
- Medical devices: You can claim expenses for prescribed medical devices like wheelchairs, hearing aids, blood sugar monitors, and CPAP machines for sleep apnea.
- Medical treatments: Costs for physiotherapy, psychotherapy, counselling, chiropractic care, and occupational therapy performed by licensed professionals can be claimed.
- Fertility treatments: In vitro fertilization, egg freezing, sperm donation, and fertility medications are eligible for a claim.
- Ambulance services: You can claim the costs of ambulance services if you required emergency transportation to or from a hospital.
- Prescribed medications: Medications prescribed by a doctor and purchased from a licensed pharmacy can be claimed. However, over-the-counter medications are not eligible.
- Travel expenses: If you need to travel a considerable distance to receive medical services, you may be able to claim public transportation, vehicle, accommodation, meal, and parking expenses.
- Laboratory tests: Tests such as blood tests and urine tests prescribed by a doctor for diagnosis or treatment are eligible.
- Organ transplant: You can claim reasonable amounts paid to find a compatible donor, including legal fees, insurance premiums, and travel and accommodation expenses for those involved.
- Personalized therapy plans: Salaries and wages paid for designing a personalized therapy plan for someone eligible for the Disability Tax Credit can be claimed under certain conditions.
Claiming Medical Insurance Premiums:
You may also be able to claim the premiums you pay for your health insurance as a medical expense. This typically applies if you have purchased additional health insurance or if you are self-employed and have a private health insurance policy that covers you, your spouse, common-law partner, or eligible dependents. However, if your employer provides your health benefits, you usually cannot claim the premiums on your taxes, as they are already included in your total compensation.
Documentation and Receipts:
It is essential to keep detailed records and receipts for all your medical expenses. In the event of a Canada Revenue Agency (CRA) audit, you will need to provide proof of payment, such as receipts and bank or credit card statements. Receipts should include the name of the company or individual, the purpose of the payment, the date, the patient's name, and the medical practitioner's information, if applicable.
Claiming Process:
When filing your tax return, you can claim your eligible medical expenses on lines 33099 and 33199 (previously known as lines 330 and 331). You will need to calculate the total amount of eligible medical expenses paid by you or your spouse/common-law partner. Then, subtract the lesser of the following amounts: 3% of your net income or $2,759 (as of 2024). The result is the amount you can claim on your tax return.
Additionally, it is worth comparing the amount you can claim with your spouse's or common-law partner's claim. It may be more advantageous for the partner with the lower net income to claim the eligible medical expenses, potentially resulting in a higher tax credit.
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Claiming dental treatments
In Canada, you can claim eligible dental expenses as medical expense deductions when filing your income taxes. This includes dental expenses for yourself, your spouse or common-law partner, and your or your spouse's children aged 18 or older. You can also claim expenses for your or your spouse's parents, grandparents, siblings, and other family members who were residents of Canada at any time in the year and depended on you for support.
Most non-cosmetic dental expenses are tax-deductible. For example, if you paid for dental work, you may be able to claim these expenses on your income tax and benefit return (T1). However, expenses for purely cosmetic procedures, such as teeth whitening, are not eligible for deduction.
When claiming dental expenses, you can generally claim all amounts paid, even if they were not paid in Canada. However, you can only claim the portion of the expense that you or someone else have not been and will not be reimbursed for. For example, if your insurance covers 80% of a dental procedure, you can only claim the remaining 20%. If you have no insurance, you can claim the full amount. Additionally, keep in mind that your claimable medical expenses, including dental, need to exceed 3% of your income or a certain threshold amount before they will have any impact on your return.
To claim dental expenses, you will need to include the total amount paid for eligible dental expenses on Line 33099 of your tax return (Step 5 – Federal Tax). If you are claiming expenses for a dependent who is 18 or older, you may be asked to provide proof of support, such as a lease agreement or grocery receipts. You do not need to send any supporting documents with your tax return, but be sure to keep them in case the Canada Revenue Agency (CRA) asks to see them later. Receipts should show the name of the company or individual to whom the expense was paid, the purpose of the payment, the date of payment, the name of the patient, and the medical practitioner, if applicable.
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Claiming travel expenses
In Canada, you can claim eligible medical expenses on your tax return if you, your spouse, or common-law partner paid for them in any 12-month period ending in the year before the return. For example, for your 2023 tax return, you can claim expenses from January 1, 2023, to December 31, 2023, or any other 12-month period that works for you. You can claim all amounts paid, even if they were not paid in Canada, as long as they were not reimbursed.
Now, let's focus on claiming travel expenses. If you are a salaried employee, you can claim travel expenses if you did not receive a non-taxable allowance for them. You must keep a copy of Form T2200, Declaration of Terms of Employment, which has been filled out and signed by your employer. On the "Other expenses" line of Form T777, Statement of Employment Costs, enter your claim for deductible transportation costs (including those incurred by bus, train, or other modes of transportation). You can also deduct food and beverage expenses if your employer requires you to be away for at least 12 consecutive hours from your regular workplace. The most you can deduct for food and beverage expenses is 50% of the total cost.
If you are a transportation employee, you may also be able to claim expenses for meals and lodging. Include these on the Food, beverages, and entertainment expenses line (8523) of Form T777, Statement of Employment Expenses, and attach it to your paper return.
If you are claiming travel expenses for medical reasons, you can claim reasonable travel expenses for the patient, donor, and their respective attendants for procedures such as organ transplants and cancer treatment.
Remember to keep all your receipts and proof of payment, such as bank or credit card statements, as you may be asked to provide them later.
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Claiming medical expenses for dependants
In Canada, you can claim a non-refundable tax credit for medical expenses you paid in the year for your dependants. A dependant can be your or your spouse's or common-law partner's child or grandchild who was 18 years of age or older on December 31, 2024. To be eligible, your dependant must have relied on you for support and lived with you during the year. If your dependant didn't live with you, they must have been a resident of Canada at some time during the year. The residency requirement doesn't apply to your or your spouse's child or grandchild.
You can only claim medical expenses for which you or someone else have not been or will not be reimbursed. If your health insurance plan reimbursed you for 80% of your dependant's medical expenses, for example, you can only claim the remaining 20% on your return. You can claim expenses for any 12-month period ending in the tax year for which you're filing a return. This means that for the 2024 tax year, you could claim expenses paid in 2023 and 2024.
If you are claiming amounts for a dependant who is 18 or older, the CRA may ask you for proof of support, such as a lease agreement or grocery receipts. Receipts must show the name of the company or individual to whom an expense was paid. Receipts for attendant care or therapy paid to an individual should also show the individual's social insurance number. Receipts should also show the purpose of the payment, the date of payment, the name of the patient, and, if applicable, the medical practitioner who prescribed the purchase or gave the service. In addition to receipts, the CRA may ask to see proof of payment, such as bank or credit card statements.
You can claim as medical expenses the amounts you or your spouse or common-law partner paid for attendant care or care in a facility. The expenses must have been paid for the care of any of the following persons: your or your spouse's or common-law partner's parent, grandparent, brother, sister, uncle, aunt, nephew, or niece who lived in Canada at any time in the year. Attendant care is care given by an attendant who does personal tasks that a person cannot do for themselves. Attendant care can be received in certain types of facilities. You can claim amounts paid to an attendant only if the attendant was not your spouse or common-law partner and was 18 years of age or older when the amounts were paid.
You can claim the fees paid to a nursing home for full-time care as a medical expense, but no one, including yourself, can then claim the disability amount for the same person. You can claim the disability amount together with the portion of the nursing home fees that relate only to salaries and wages for attendant care. However, you must provide a breakdown of the amounts charged by the nursing home, showing the portion of payments that relate to attendant care.
Other eligible medical expenses include:
- Bone marrow transplant — reasonable amounts paid to find a compatible donor, to arrange the transplant including legal fees and insurance premiums, and reasonable travel, board and lodging expenses for the patient, the donor, and their respective attendants.
- Cancer treatment in or outside Canada, given by a medical practitioner or a public or licensed private hospital.
- Cosmetic surgery — expenses for a cosmetic procedure qualify as an eligible medical expense if it is necessary for medical or reconstructive purposes, such as surgery to address a deformity related to a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.
- Organ transplant — reasonable amounts paid to find a compatible donor, to arrange the transplant including legal fees and insurance premiums, and reasonable travel, board and lodging expenses for the patient, the donor, and their respective attendants.
- Personalized therapy plan — the salaries and wages paid for designing a personalized therapy plan are eligible medical expenses if certain conditions are met. The plan has to be designed for a person who is eligible for the disability tax credit (DTC) and paid to someone who is in the business of providing such services to unrelated persons. The therapy has to be prescribed and supervised by a psychologist, a medical doctor, or a nurse practitioner for a mental impairment; or an occupational therapist, a medical doctor, or a nurse practitioner for a physical impairment.
- Training — reasonable amounts paid for you or a relative to learn to care for a relative with a mental or physical impairment who lives with you or depends on you for support. The amount has to be paid to someone who is not your spouse or common-law partner and who was 18 years of age or older when the amounts were paid.
- Treatment centre for a person addicted to drugs, alcohol, or gambling. A medical practitioner must certify in writing that the person needs the specialized equipment, facilities, or staff.
- Whirlpool bath treatments — the amount paid to a medical practitioner for these treatments. A hot tub that you install in your home, even if prescribed by a medical practitioner, is not eligible.
- Driveway access — reasonable amounts paid to alter the driveway of the main place of residence of a person who has a severe and prolonged mobility impairment, to ease access.
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Frequently asked questions
Yes, you can claim medical insurance on your taxes in Canada. You can claim the premiums you pay for your health insurance, as well as your medical expenses.
You can claim a wide range of medical expenses on your taxes in Canada, including:
- Dental treatments (fillings, root canals, braces, dentures, teeth cleaning)
- Prescribed medications
- Vision-related expenses (eye exams, glasses, contact lenses, eye laser surgery)
- Medical devices (wheelchairs, hearing aids, blood sugar monitors, CPAP machines)
- Ambulance services
- Fertility treatments
- Laboratory tests
- Travel expenses for medical services
To claim your medical expenses on your taxes in Canada, you need to add up the total amount you paid for eligible medical expenses during the tax year. You can then claim these expenses on lines 33099 and 33199 of your tax return. Keep in mind that you will need to provide receipts and proof of payment for your expenses.
