Many Canadians often struggle to determine which medical expenses are eligible to be claimed on their personal tax return and oftentimes make errors on medical expenses they do claim on their personal tax return. Many taxpayers miss deducting various medical expenses due to their uncertainty surrounding the subject.
This article will discuss the different types of medical expenses that you as a taxpayer may claim on your personal tax return. We will also look into some practical tips for your convenience. Take this as an opportunity for you to become more informed on what medical expense claims you may be eligible for or may have missed in the past. Remember, just because you didn’t claim a medical expense in past years, doesn’t mean you can’t go back and correct the tax return filed. We help many taxpayers navigate the complexities of medical expense claims, please reach if you feel you may require our assistance.
What Are Allowable Medical Expenses?
One of the most challenging questions taxpayers face is determining what medical expenses the Canada Revenue Agency (CRA) will allow taxpayers to claim. Below are some of the medical expenses taxpayers are able to claim on their personal tax return (prescriptions are required):
- Premiums paid to private health insurance plans
- Prescription medication
- Dental services
- Prosthetic limbs
- Physiotherapy
- Massage therapy from a registered massage therapist
- Bathroom aids
- Laser eye surgery
- Crutches
- Service animals
- Medicinal marijuana (prescription required)
Word of caution: keep copies of all medical expense receipts. Should you not be able to provide the CRA with copies of the receipts for medical expenses incurred and claimed, CRA will reverse the taxpayers’ medical expense claim and there will be additional tax owing and interest charged to the taxpayer.
What Are Not Considered as Deductibles in Medical Expenses?
Due to the confusion surrounding medical expense claims it is crucial you ensure that the expenses you are claiming are considered deductible medical expenses by the CRA. Some common expenses taxpayers mistakenly include as deductible medical expenses are:
- Gym membership fees and personal training expenses
- Diaper services
- Cosmetic surgery bills
- Over-the-counter medicine, even if prescribed
- Personal response systems
Including expenses like those noted above, will lead to CRA having to reassess your return (should it be reviewed). Should CRA reject certain medical expenses the taxpayer has deducted, this will lead to additional tax owing and potentially interest charges. For instance, some cases of reconstructive surgery may be approved as returns, especially if you are a victim of something serious, like a life-threatening accident or congenital defect.
As a preventive measure, it’s best to look for personal tax and accounting services near you to provide you with professional assistance on claiming tax returns, so you can sleep easy knowing you don’t have to worry about having your return reassessed.
Practical Tips About Claiming Medical Expenses on Tax Returns
If you still have some reservations about preparing your tax returns and including medical expenses, remember the following tips to guide you through the process:
- Be mindful of the tax year: The CRA grants you the opportunity to utilize all medical expenses within 12 months. In fact, the Agency wants you to benefit the most from your claim. However, you have to be aware of the tax year since you can’t claim a medical expense if you go past the 12 months. As such, ensure you have all your records ready by consulting with a personal accountant, allowing you to meet tax credits easily!
- Choose between tax return filing electronically or through mail: You have the privilege to choose between online means or postal service to apply for tax credits. However, make sure that you have all your supporting documents with you. This applies to both types of filling.
Conclusion
Different technical information is involved in personal tax returns and medical expenses, meaning the process can be tedious. Fortunately, you now have a better understanding of it. All you have to do is reach out to a professional accounting service provider to help you manage your records and finances. Consider investing in personal accounting today!
Are you looking for professional accounting services in Canada for your personal tax returns? We at Blueprint Accounting can provide you with that. We are your cloud-based firm, offering you the best solutions to manage your financial assets. Reach out to our team to assist you with your medical expenses and other related payments.