Claiming Physio, Therapy and Dental on Your Taxes: The Medical Expense Credit

If you paid for health care out of pocket this year, some of that money may come back to you at tax time. The federal medical expense tax credit lets you claim eligible costs that were not reimbursed. Many people forget to use it.

How the credit works

You add up eligible medical expenses for any 12-month period ending in the tax year. You can only claim the amount that is above a threshold, which is the lesser of a fixed dollar amount set each year and 3 percent of your net income. The credit then reduces your tax. Your province may offer its own credit as well.

Because the threshold depends on income, the credit is often more useful for people with lower incomes or large medical costs.

What can count

Eligible expenses generally include fees paid to medical practitioners and certain other professionals authorized in your province. Common examples:

• Dentists and dental hygienists
• Physiotherapists
• Psychologists
• Other regulated practitioners such as chiropractors and, in many provinces, massage therapists and naturopaths
• Eye exams, prescription glasses and contacts
• Prescription medications
• Premiums for private health plans, in many cases

Eligibility depends on the provider and service. The Canada Revenue Agency (CRA) publishes a detailed list.

What does not count

• Costs your insurer or benefits plan already reimbursed
• Cosmetic procedures
• Most non-prescription supplements

How to claim

1. Gather receipts for the 12-month period you choose. Each should show the provider, service, date and amount.
2. Subtract reimbursements from insurance.
3. Claim on the right line of your return. Tax software walks you through it.
4. Keep your receipts in case the CRA asks to see them.

You can generally claim for yourself, your spouse or common-law partner, and certain dependants. The lower-income spouse often claims, since the threshold is based on income, but check the numbers for your situation.

Tips

• Pick the best 12-month period, not only the calendar year.
• Save receipts as you go. A folder or photo album works.
• Ask providers for itemized receipts.
• Check the CRA’s current rules each year, since amounts and rules change.

Quebec

Quebec has its own system. Revenu Québec has details on its medical expense credit.

Find a verified provider in your budget. Search by city, service and price at AffordableHealth.ca. It is free for patients.

This article is general information, not tax advice. Rules, amounts and eligibility change and depend on your situation. Check the Canada Revenue Agency (or Revenu Québec) or talk to a tax professional before you file.