Home » Tax Deductible Medical Expenses – What You Can Claim
Here we are going to go over the basics as they relate to Canadian taxes and medical expenses for the 2021 tax year.
What is Considered a Medical Expense for Tax Purposes?
We recognize that figuring out what medical costs you can claim can be difficult. If you have qualified medical expenses, you can claim them on your tax return if they were:
You can claim all or part of your medical expenditures that haven’t been reimbursed or won’t be reimbursed. For instance, if your health insurance compensated you for 80% of your medical expenses, you can really only claim the remaining 20% on your tax return.
This leads to the second question: what are medical expenses that are qualified for tax purposes? This section will be divided into two parts:
It’s critical to double-check that your spending is tax-deductible in your province or territory. The Canada Revenue Agency (CRA) acknowledges that its list isn’t that exhaustive, but the CRA Medical Expense Chart offers a searchable overview that serves as a decent starting point when determining what medical expenses might be deductible.
Because that chart is long and a little tricky to navigate, here’s a look at some examples of common medical expenses:
It’s important to remember that you’ll need to keep your receipts when claiming these expenses. If you file a paper tax return, you must include your receipts. However, if you file online, which most people do, it’s still a good idea to keep all of your receipts in case the CRA wants them at a later point.
As we mentioned earlier, we appreciate that determining whether medical expenses are deductible from the perspective of the CRA is difficult.
Some medical expenses you might not expect that improve the quality of life for someone living with a health issue can be claimed as a tax deduction, as can some common expenses that are often missed. However, keep in mind that some of these may require a prescription from a doctor.
The following are examples of such costs:
The same requirements regarding keeping your receipts apply here as well. So, unless you’re filing a paper return (in which case you’ll need to attach all of your receipts), save any receipts in case the CRA asks to look at them.
And by the way, if you are wondering if all those masks you purchased in 2021 to meet COVID-19 regulations are tax-deductible, according to an interview with CRA representatives the answer is no, unless they were of the prescribed by a doctor medical variety.
You can claim medical expenses on your tax return for the following people:
If you and your family incurred a lot of medical expenses in 2021, before you file your taxes this year, it’s a smart move to consult with a tax accountant – like us – to have them help you ensure you claim back everything you can.