Haris Ashley
In Canada, eligible medical expenses can be claimed on your tax return, which can significantly reduce your taxes. These expenses include premiums paid for a private health insurance plan, which may qualify if they meet certain criteria. Self-employed individuals can also deduct premiums that they pay for medical and dental insurance coverage for themselves, their spouse, and their dependents. Additionally, Canadian travellers may be able to claim their travel medical insurance premiums for a CRA Medical Expense Tax Credit on their income tax return.
| Characteristics | Values |
|---|---|
| Who can claim medical insurance? | Self-employed individuals, freelancers, gig workers, and business owners can claim medical insurance on their taxes in Canada. |
| Individuals can claim medical insurance for themselves, their spouse, or common-law partner, and their children who were under 18 years old at the end of the tax year. | |
| Individuals can also claim medical expenses for their or their spouse's parents, grandparents, siblings, uncles, aunts, nephews, or nieces who were residents of Canada at any time in the year. | |
| What can be claimed? | Medical expenses, including dental and hospitalization plans, are considered eligible. |
| Travel medical insurance premiums may be eligible for a tax credit. | |
| Additional coverage purchased from a private company can be claimed. | |
| Car insurance may be claimed if it is associated with business travel. | |
| Only the part of the expense that has not been reimbursed can be claimed. | |
| The reimbursement can be claimed if it is included in the income. | |
| When to claim? | Claim on line 33099 or line 33199 of the tax return (Step 5 – Federal tax). |
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What You'll Learn
- Self-employed individuals can claim health insurance premiums as a business expense
- Medical Expense Tax Credits can be claimed for travel medical insurance premiums
- Claim eligible medical expenses on lines 33099 or 33199 of your tax return
- Medical expenses for your spouse or common-law partner can be claimed
- Medical expenses for your children can be claimed
Self-employed individuals can claim health insurance premiums as a business expense
Self-employed individuals in Canada can claim health insurance premiums as a business expense. This includes premiums paid for medical, dental, and hospitalization plans for themselves, their spouse, and their minor children. To be considered a business expense, the health insurance plan must meet certain criteria. Firstly, the premiums paid must be for a private health services plan (PHSP) and not a plan provided by an employer. Secondly, the plan must cover medical services that are permissible under the Medical Expense Tax Credit, and it must qualify as eligible under the Canada Revenue Agency's (CRA) rules.
To claim health insurance premiums as a business expense, self-employed individuals must meet specific conditions. They must be actively engaged in their business on a regular and continuous basis, either individually or as a member of a partnership. Additionally, the premiums must be paid to insure themselves, their spouse, common-law partner, or any member of their household. Furthermore, one of the following conditions must be met: the net income from self-employment (excluding losses and PHSP deductions) must be more than 50% of their total income, or their income from sources other than self-employment must be $10,000 or less.
It is important to note that self-employed individuals cannot claim a deduction for PHSP premiums if another person has already deducted the amount or if someone else has claimed the premiums as a medical expense. Additionally, if a self-employed individual or their spouse is eligible to participate in an employer-subsidized health plan, they cannot claim the health insurance premium write-off for those months. Moreover, the health insurance premium deduction cannot exceed the earned income collected from their business.
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Medical Expense Tax Credits can be claimed for travel medical insurance premiums
In Canada, you can claim eligible medical expenses on your tax return. This includes the Medical Expense Tax Credit, which can significantly reduce your taxes. While it is not always clear which medical expenses are eligible, you can claim the credit on line 33099 or line 33199 of your tax return (Step 5 – Federal Tax).
The Medical Expense Tax Credit covers travel medical insurance premiums, as well as other eligible medical expenses incurred inside and outside Canada, as long as they were not reimbursed under an insurance plan. To be eligible for the tax credit, your medical expenses must exceed a minimum dollar value threshold set by the government. You will only be able to recoup a percentage of your expenses, not the full amount.
To claim the tax credit, you will need a copy of your travel medical insurance receipt/confirmation to prove to the Canada Revenue Agency (CRA) how much your premium cost and that your insurance policy was eligible for a tax credit. You can also claim the premiums you pay for medical and dental insurance coverage for yourself, your spouse, and your dependents. If you are self-employed, you may be eligible to deduct premiums that you pay for medical and dental insurance coverage for yourself, your spouse, and your dependents.
If you are paying premiums under a plan managed by your employer, you will find the exact amount paid on your T4 Statement of Remuneration slip in Box 85 of the “other information” section. If you do not have the information on a T4 slip, keep your receipts to be able to prove the amounts you paid in the event of a CRA audit.
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Claim eligible medical expenses on lines 33099 or 33199 of your tax return
You can claim eligible medical expenses on line 33099 or line 33199 of your tax return (Step 5 – Federal tax).
Line 33099
Use line 33099 to claim the total eligible medical expenses that you or your spouse or common-law partner paid for any of the following persons:
- Your or your spouse or common-law partner's children who were under 18 years of age at the end of the tax year.
- Yourself.
Line 33199
Use line 33199 to claim the part of eligible medical expenses that you or your spouse or common-law partner paid for any of the following persons who depended on you for support:
- Your or your spouse or common-law partner's children who were 18 years of age or older at the end of the tax year, or grandchildren.
- Your or your spouse or common-law partner's parents, grandparents, brothers, sisters, uncles, aunts, nephews, or nieces who were residents of Canada at any time in the year.
Calculating the Amount to Enter on Lines 33099 and 33199
On line 33099 of your tax return, enter the total amount that you or your spouse or common-law partner paid in 2024 for eligible medical expenses. On the line below line 33099, enter the lesser of the following amounts:
- 3% of your net income (line 23600)
- $2,759
Subtract the amount of step 2 from the amount on line 33099, and enter the result on the following line of your tax return (Step 5 – Federal tax).
You have to do the following calculation for each dependant.
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Medical expenses for your spouse or common-law partner can be claimed
In Canada, you can claim medical expenses for your spouse or common-law partner on your tax return. This includes medical, dental, and hospitalization plans. You can claim the total eligible medical expenses paid by your spouse or common-law partner for your children who were under 18 years old at the end of the tax year. This can be done on line 33099 of your tax return (Step 5 – Federal Tax).
If you have children who are 18 years of age or older, or other dependants such as parents or grandparents, you can claim the eligible medical expenses you paid for them on line 33199.
It is important to note that you can only claim the part of the expense that has not been and will not be reimbursed. For example, if you have insurance through your employer, you cannot claim those costs as they are already covered by your plan. However, if you have additional coverage or expenses that are not covered by your employer's plan, you can claim those expenses.
To claim medical expenses, you will need to provide proof of the amount you paid and that your insurance policy was eligible for a tax credit. This can include receipts or confirmation of your insurance premium cost.
Additionally, only medical expenses that exceed a minimum dollar value threshold prescribed by the government are eligible for the tax credit. The tax credit will not cover the full amount of your eligible expenses, but it can still help you save money by reducing your income tax liability.
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Medical expenses for your children can be claimed
In Canada, you can claim medical expenses for yourself, your spouse, your common-law partner, and your dependants, which can reduce your federal tax. This includes medical expenses for your children.
If your children are under 18 years of age at the end of the tax year, you can claim their medical expenses on line 33099 of your tax return. If your children are 18 years of age or older, or are grandchildren who depend on you for support, you can claim their medical expenses on line 33199.
The Canada Revenue Agency (CRA) allows you to claim a number of medical expenses. These include medical aids such as wheelchairs, hearing aids, eyeglasses, and contact lenses, as well as pre- and post-natal treatments and in vitro fertility treatments. Travel and hotel expenses to receive medical care outside your community are also eligible, but you must keep track of mileage, date, and reason for the visit.
You can only claim the part of the expense that you or someone else have not been and will not be reimbursed for. However, the expense can be claimed if the reimbursement is included in your or someone else's income and was not deducted elsewhere on the tax return.
If you are paying premiums under a plan managed by your employer, you will find the exact amount paid on your T4 Statement of Remuneration slip in Box 85 of the "other information" section. If you do not have this information, keep your receipts to prove the amounts you paid in the event of a CRA audit.
If you are self-employed, you may be eligible to deduct premiums that you pay for medical and dental insurance coverage for yourself, your spouse, and your dependents.
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Frequently asked questions
To be eligible for tax credits, your medical insurance must meet certain criteria. The Canada Revenue Agency (CRA) considers premiums paid to private health services plans, including medical, dental, and hospitalization plans, as eligible medical expenses. The plan must be an insurance plan, and at least 90% of the premiums paid under the plan must relate to medical expenses.
Eligible medical expenses include the cost of medical, dental, and hospitalization plans for yourself, your spouse, or your minor children. You can also claim eligible medical expenses for your or your spouse's children under 18, children 18 or older, parents, grandparents, siblings, and nieces/nephews. If you had to travel outside of Canada for medical reasons, you can claim those expenses. If you have celiac disease, you can claim the extra cost of purchasing gluten-free food.
You can claim eligible medical expenses on your tax return. Self-employed individuals can deduct premiums paid for medical and dental insurance coverage for themselves, their spouses, and their dependents. If you are paying premiums under a plan managed by your employer, you can find the exact amount paid on your T4 Statement of Remuneration slip in Box 85. If you do not have this information, keep your receipts in case of a CRA audit.
