Crédit d’impôt pour frais médicaux admissibles au Canada

What are the eligible medical expenses in Canada?

When dealing with a health issue, you’re probably not thinking about keeping track of receipts. But did you know there are countless medical expenses, ranging from common (prescription medications and medical aids) to not-so-common (service animals, orthopedic shoes, baby breathing monitors) that you can legitimately write-off? 

Even most dental expenses are deductible, as long as they’re not cosmetic. And they all add up at tax time so you can save money on your taxes. 

What is the Medical Expense Tax Credit (METC)?

The deductible medical expenses are considered a non-refundable tax credit, meaning they can help lower how much taxes you’d have to pay.

To qualify, your household’s eligible medical expenses must add up to the lesser of 3% of your net income or $2,479. For example, if your net income is $60,000, all medical expenses beyond $1,800 are a credit against your taxable income.

Many people don’t bother calculating their expenses to claim the METC because they assume they won’t meet the 3% threshold. But there are so many legitimate medical expenses—like car mileage and caregiver lodging for out-of-town appointments — that most people don’t think about or know about. 

So try your best to keep track of receipts and document your expenses. They’ll add up quickly to help you surpass the all-important 3% mark!

How to make the most out of your medical expenses?

Unlike other deductible expenses, medical expenses don’t have to follow a calendar year. The CRA lets you pick the 12-month period to claim these expenses. 

For example: Let’s say your family had a tonne of medical expenses from November until March. Both kids got braces, your spouse spent a bundle on glasses, and you needed physiotherapy due to a fall. If you had to follow the calendar year, the 3% rule would apply to the expenses of two different tax years.

By making your 12-month period from November 1 to October 31, you’ll be able to lump all the expenses together on one return (lines 33099 and 275 for Quebec), so the total is more likely to exceed the 3% threshold—at which point the METC kicks in.

Here’s what we mean:

Let’s say your 3% threshold is the same in both year one and two, being $2,250.

• Year one expenses = $8,400
• Year two expenses = $7,775
• • •  

If you claim each year independently, you’ll have to deduct the 3% in both years:

• Year 1 months 7–12 = $6,150 ($8,400-$2,250)
• Year 2 months 1–6 = $5,525 ($7,775-$2,250)
• • •  

If you combine the two years, you’ll only reduce the total claim by 3% at one time.

• Year 1 and 2 =$13,925 [($8,400+$7,775)-$2,250] 

It may be more advantageous to bring expenses from two calendar years into one, to eliminate the 3% minimum threshold in the second year of expenses.

Remember to include 12 consecutive months over two years, and to stay consistent in future years to ensure there are no duplicate claims.

While keeping track of medical receipts may seem like a mundane task, getting into the habit of tallying health-related expenses can help lower your tax bill and get you the best possible tax outcome for you and your loved ones.

Think of it as a healthy habit. If you need extra support this year, our TurboTax experts are here to help.

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