One of the least-used tax credits is also one of the murkiest. But by not claiming certain health-care costs via the Medical Expense Tax Credit, Canadians could be losing big dollars.
“The opportunity to save money is not used…because you’ve got to keep some records and have some efficient way to calculate the deduction,” says John Crawford, chartered accountant and chief financial officer of health insurer Pacific Blue Cross. “There’s a lot of interpretations as to whether something qualifies or doesn’t qualify in relation to the Canada Revenue Agency. Certain items need qualification and certain items are not quite clear. But things that are not claimed can all add up.” Read More…
This is very good to know. I only learned about this, this year sadly and maybe it was my own stupidity but i just never thought that medical could be claimed. Good to know now.
Can expenses from previous years be claimed too on the latest return or does one have to refile the old returns?
This article doesn’t go far enough. For small businesses they should instead look to PHSP so they can claim their expense as a business expense instead. That way you there is no minimum amount you need to cross — all of it is covered.
Source: I am a small business owner 🙂
Lol! People think organic food is something they can deduct as expense? wtf? I think i’ve heard it all 😀
Ahh so the real catch to CRA’s medical expense is that there is a threshold of $2k. That makes sense since it really should be an expense for people with major medical issues.
Darn, so diaper services aren’t covered? I am a single mother and i’ve been told (through friends) this was covered. Anyone know more regarding this specifically?
Yea it’s very true most of us don’t make use of this. The biggest reason, as briefly discussed, is to do with its unclear specifics of what can/can’t be claimed.
CRA should make it more clear.