Claiming Medical Expenses

by Lake, Bookkeeping Essentials
(BC, Canada)

CRA has a very useful chart for authorized medical practitioners by province or territory.


Use this reference for the purposes of determining which payments to practitioners are authorized for claiming medical expenses on your annual tax returns.

While taking an H&R Block tax course in the fall of 2009, our instructor pointed out that each province regulates their own professional medical practitioners ... so as you can imagine, there is a variety of differences between the provinces.

For example dentists and doctors are authorized all across Canada, but only BC , Ontario and Newfoundland allow your Massage Therapist payments to be claimed and chiropractic expenses are not claimable in every province.

What this means to you, as you prepare your own tax return, is that some expenses may be allowed in some provinces but not in others. This list becomes very useful given the disparities.

The chart is located on the CRA website Individuals > Tax return > Deductions > Medical expenses > List of allowable medical expenses. (I like to put the file path just in case CRA moves things around on their site.)

If you search for Line 330 on the site, you will also be able to get a list of which medical expenses are eligible for the non-refundable tax credit (Schedule 1) and which expenses are ineligible.

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Apr 01, 2010
 Allowable Medical Expenses
by: Lakeshore Bookkeeping Services

Here are some additional, useful CRA links regarding medical expenses.

The first are CRA's extensive list of allowable medical expenses. Cosmetic surgery incurred after March 4, 2010 will no longer be deductible (under the proposed changes of the March 2010 Federal Budget).

Individuals> Tax return> Deductions >Medical expenses > List of allowable medical expenses.

Medical expenses that are ineligible: Notice in the list above that over the counter medications, vitamins, and supplements are not deductible ... even if prescribed by a physician; neither is non-prescription birth control. Purely cosmetic surgery / medical expenses such as botox and teeth whitening are not eligible.

It is my understanding that homeopathic medicine is always controversial. It is not deductible even if prescribed by a medical practitioner and recorded by a pharmacist ... but homeopathic services are ... if paid to a medical practitioner which is defined in IT-519R2 section 3.

Medical expenses that have been reimbursed under any kind of plan are not deductible.

To qualify for the disability amount, you need to have T2201 Disability Tax Credit Certificate signed by a medical practitioner ... and approved and on file with CRA.

On the CRA website, you can answer questions online to see if you qualify.
Dec 03, 2010
 Travel Expenses for Medical Expenses
by: Bookkeeping Essentials

If you travel 40 kilometres or more for medical appointments, make sure you keep a travel log. You can claim travel expenses on line 330 of Schedule 1.

Check out the criteria that must be met to claim travel expenses for medical expenses CRA's website at Individuals> Tax return> Deductions> Medical expenses> Which medical expenses are eligible?> Travel expenses for the purposes of claiming the medical expenses tax credit.
Mar 10, 2011
 Medical Expense Travel Backup
by: Bookkeeping Essentials

In the Knowledge Bureau's free e-newsletter this week (March 9, 2011), it mentions that CRA frequently audits medical travel claims. They recommend that you have "proof of attendance" to back up your claim and make an audit go smoothly.

One way to prove your attendance is if you paid for the services on the same day as the trip.

Another way is to keep an auto log and your gas receipts and parking tickets ... I mean parking stubs. :0)
Feb 23, 2012
 New Federal Tax Credit for Caregivers
by: Lake

The Minister of Finance sent out a reminder today of the new Family Caregiver Tax Credit and the removal of the $10,000 limit on the Medical Expense Tax Credit; effective January 1, 2012,:

"This 15-per-cent non-refundable tax credit on an amount of $2,000 will provide tax relief for caregivers of all types of infirm dependent relatives, including, for the first time, spouses, common-law partners and minor children. Canadians will be able to claim the credit on their tax returns for 2012 and beyond.

In addition to the Family Caregiver Tax Credit, Budget 2011 also announced the removal of the $10,000 limit on the amount of eligible expenses a taxpayer can claim under the Medical Expense Tax Credit in respect of a financially dependent relative."

You can read more about this and other medical related measures on the Department of Finance website ... Government Provides New Tax Relief to Caregivers.
Mar 25, 2013
 Budget 2013 GST/HST Exemption
by: Lake

The 2013 federal budget proposes to exempt the supply of publicly subsidized or funded personal care services from goods and services tax/harmonized sales tax (GST/HST), effective for supplies made after budget day.

The exemption applies to such services as bathing, feeding, assistance with dressing or taking medication rendered to persons who, due to age, infirmity or disability, require assistance in their home.




Source: Deloitte newsletter dated March 21, 2013
Jun 10, 2013
 An Often Missed Item in BC
by: Lake

In BC, MSP premiums are based on individual or family income. If you earned under $30,000 (adjusted net income) in the prior tax year, you may apply for premium assistance.

If you earned under $22,000, your medical services premiums are free.

Here is the link to the MSP Application for Regular Premium Assistance:

health.gov.bc.ca/exforms/msp/119fil.pdf

You can go back 6 years from the date of application.

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