Are You Claiming All Your Medical Expenses?

During April I get asked if there are any other deductions which taxpayers are missing. Canadians are often surprised by their tax bill and are hoping there is something else which can be done to reduce this bill.

The first thing I want to know about this taxpayer, after they ask me the question, is do they have any medical expenses? Medical expenses are an area where people might not fully understand the available deductions.

Medical Plans

Do you pay for any medical plans, such as Blue Cross? The premiums which you pay for medical and dental plans are eligible to be included in your medical expenses for tax purposes. Make sure you do not include life insurance premiums if you make a payment that includes multiple plans. If you are an employee who pays medical premiums at work, then box 85 of your T4 will include the amount you paid, and you do not need any other receipt.

Medical travel

Then there is medical travel. Did you have to travel for appointments such as seeing specialists or having tests done at hospitals which were not in your area? If you travel more than 40km one way, you can deduct for mileage at 55 cents per km. If you travel more than 80 km one way you can take other deductions such as meals or lodging.

If you are going to make these claims, be sure to keep all the receipts. Pay for meals and hotel rooms with a credit card or debit card so you can prove you are the one who made the payment.

Don’t forget about eyeglasses, contact lenses or hearing aid batteries. And items such as canes, walkers, wheel chairs and crutches.

Conclusion

Think about all of the medical services you consumed in 2021, gather the receipts and bring them to your tax preparer.