Jane Dotson
The Canada Revenue Agency (CRA) allows eligible medical expenses to be claimed on your tax return. These include premiums paid for a private health insurance plan, which can be claimed on lines 33099 and 33199 of your tax return. The CRA considers private health services plan (PHSP) premiums payable to an insurance company to be deductible, including premiums for personal health insurance policies that cover you, your spouse or common-law partner, or your eligible dependents. To qualify for the Medical Expense Tax Credit, you must compare your plan's coverage to the CRA's list of eligible medical expenses.
| Characteristics | Values |
|---|---|
| Medical insurance tax credit | Eligible for premiums paid for a private health insurance plan |
| Claiming medical expenses | Can be claimed on lines 33099 and 33199 of the tax return |
| Medical expense eligibility | Includes premiums, contributions, or other considerations paid to a PHSP |
| Medical expense eligibility | Includes GST, PST, HST, and premium taxes |
| Medical expense eligibility | Includes salary or remuneration paid to attendants |
| Medical expense eligibility | Includes employer's portion of employment insurance premiums |
| Medical expense eligibility | Includes Canada/Quebec Pension Plan contributions |
| Medical expense eligibility | Includes workers' compensation insurance premiums |
| Medical expense eligibility | Includes remuneration for care/supervision in a group home for patients with disabilities |
| Medical expense eligibility | Includes expenses for medical cannabis, service animals, ambulance services, cosmetic/plastic surgery, appliances, gluten-free products, tutoring, and prescription sunglasses |
| Receipts | Required for proof of payment and may be requested by the CRA |
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What You'll Learn
Private health insurance premiums
To claim the payments of your health plan premium, include them with your other eligible medical expenses and claim the credit on line 33099 of your return. If you are paying premiums under an employer-managed plan, 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.
You can claim whichever is better for you. The refundable medical expense supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses. This can be claimed on line 45200.
The CRA may ask to see proof of payment, such as bank or credit card statements, and receipts for attendant care or therapy paid to an individual should also show the individual's social insurance number.
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Medical cannabis
In Canada, medical cannabis expenses can be deducted as a medical expense on your tax return. However, this only applies if you have a prescription from an authorized medical practitioner to purchase cannabis from a licensed producer.
To calculate the amount you can claim, you must first determine the total amount you spent on medical cannabis. This includes the amount paid for fresh or dried cannabis, cannabis oils, and cannabis seeds and plants procured from a licensed producer. Costs related to growing or accessories such as lights, containers, fertilizers, vaporizers, and pipes cannot be claimed.
Next, you must calculate 3% of your net income for the year. If you are claiming medical expenses for yourself, your spouse or common-law partner, and your dependent children under 18, you will enter this information on line 33099 of your tax return. If you are claiming medical expenses for other dependents, you will enter this information on line 33199.
Finally, you will subtract the lesser of the two amounts calculated in the previous step from your total medical expenses. The resulting amount can be claimed as a medical expense on your tax return.
It is important to note that you must keep your receipts, prescriptions, and other relevant documents for reimbursement when filing your taxes. Additionally, each province and territory in Canada has different tax laws and policies, so it is recommended to seek professional advice for your specific situation.
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$22.33
$10.99 $14.95
Service animal costs
Service animals are considered working animals and not pets, and they are allowed in places where pets are prohibited. Service animals can qualify for tax deductions if they help with a specific disability or impairment. Emotional support animals that provide comfort but lack specific training do not qualify for a tax deduction. Service dogs are considered medical devices or aids and are therefore taxed as such.
The cost of buying, training, and maintaining a service animal is considered a tax-deductible medical expense. The cost of ownership can be considered a tax-deductible medical expense, with yearly ownership costs varying between $500 and $10,000. The initial cost of purchasing a service dog ranges between $15,000 and $30,000 after training. To be eligible for service animal tax deductions, you need to prove that the animal assists with a diagnosed physical or mental disability. This can be done by providing documentation from a physician and receipts of all qualified medical expenses.
To deduct costs associated with a service animal, you must itemize your deductions, which means turning down the standard deduction. For the 2024 tax year, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. To be eligible for a deduction, medical expenses must exceed 7.5% of your adjusted gross income (AGI). Your AGI is your gross income minus any adjustments, such as IRA contributions or student loan interest paid.
Some of the costs that are considered tax-deductible include food, grooming, veterinary care, and animal equipment such as leashes, harnesses, and vests. According to the IRS, all expenses incurred to maintain the health of the service animal and enable it to continue performing its duties are covered.
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Ambulance services
The CRA allows Canadians to claim tax deductions on eligible medical expenses, including ambulance services, within a 12-month period. This means that you can claim expenses for any 12-month period ending in 2024 that have not been claimed in 2023. For example, for the 2024 tax year, you could claim eligible medical expenses paid in 2023 and 2024.
It is important to note that you can only claim the portion of the expense that has not been and will not be reimbursed. If your health insurance plan, for example, reimbursed you for 80% of your ambulance service expense, you can only claim the remaining 20% on your tax return. The amount you claim must be the amount you paid out of pocket.
Additionally, to claim ambulance services as a medical expense, you must meet specific criteria. These criteria include being a resident of Canada throughout 2024 and being 18 years of age or older at the end of 2024. You must also meet the criteria related to income, as outlined by the CRA.
Other eligible medical expenses that can be claimed alongside ambulance services include premiums for private health insurance plans, travel expenses to access medical services, the cost of adapting a van to transport a person who needs a wheelchair, and expenses paid to conceive a child, such as lab tests and prescription drugs for fertility-related procedures.
It is recommended to use the CRA's digital services or telephone services to obtain specific information about your tax situation and eligible medical expense claims, including ambulance services.
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Cosmetic and plastic surgery
The CRA generally does not allow deductions for cosmetic procedures. Cosmetic surgery is generally not considered a medical expense, and therefore, the cost of cosmetic surgery cannot be included in medical expenses for tax deduction purposes. Cosmetic surgery is defined as any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease.
However, if the cosmetic surgery is deemed medically necessary and is performed to treat a medical condition, it may be considered a qualified medical expense. In such cases, the cost of the surgery may be deductible on your tax return. It is important to consult with a tax professional to determine if your specific procedure qualifies as a medical expense.
It is worth noting that the CRA allows deductions for unreimbursed medical and dental expenses, including preventative care, treatment, surgeries, dental and vision care, visits to psychologists and psychiatrists, prescription medications, and appliances such as glasses, contacts, and hearing aids. Additionally, expenses paid for medical transportation and certain out-of-pocket costs, such as IVF procedures and storage of eggs or sperm, may also be deductible.
To claim a medical expense deduction, you must itemize your deductions on Schedule A (Form 1040). The deduction applies only to expenses not compensated by insurance or otherwise, and it is subject to certain thresholds, such as exceeding a certain percentage of your adjusted gross income for the year.
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Frequently asked questions
Eligible medical expenses that you can claim on your tax return include premiums paid for a private health insurance plan, medical cannabis, service animal costs, and ambulance services. You can also claim medical expenses for any 12-month period ending in the tax year that you haven't already claimed in the previous year.
To determine if your plan qualifies for the Medical Expense Tax Credit, you need to analyze the coverage it provides and compare it to the list of eligible medical expenses from the CRA. Plans paid by an employer and most mandatory provincial health plans are not eligible to be claimed as health expenses.
Some eligible medical expenses that you might overlook include cosmetic and plastic surgery that is reconstructive or medical in nature, appliances like a furnace or air conditioner prescribed for a severe chronic respiratory ailment, and tutoring for children with disabilities.
When claiming medical expenses on your tax return, you do not need to submit supporting documents if you are filing your tax return electronically or on paper. However, you should keep your receipts and proof of payment in case the CRA asks to see them later. Receipts should include the name of the company or individual, the purpose of the payment, the date of payment, the name of the patient, and the medical practitioner who prescribed the service.
You can find more information about eligible medical expenses and how to claim them on your tax return by referring to the CRA's website or by contacting their automated service, TIPS, at 1-800-267-6999.
