Discover the wide range of medical expenses that can save you money on your next tax return.
December 15, 2014
Discover the wide range of medical expenses that can save you money on your next tax return.
Most people are aware that they can claim medical expenses on their tax return, but don’t really know the extent of the expenses they can claim.
The Medical Expense Tax Credit applies to a wide number of medical expenses including prescription drugs, eyeglasses, health-related home renovations, dental work and even gluten-free bread.
The Medical Expense Tax Credit is a non-refundable tax credit, which can be used to reduce the amount of taxes you have to pay come tax season. But it will not generate a refund. So if you don’t usually owe any taxes, this tax credit can’t help you put more money in your pocket.
The government automatically deducts the lesser of either $2,109 (this amount fluctuates yearly) or three per cent of your net income from your total medical expenses.
A good idea is to contact your local pharmacy or drug store and see if they can provide you with a single receipt for all your prescriptions for the year so you don’t have to keep individual receipts.
The Canadian Revenue Agency has dealt with almost every possible medical expense so they have built up an exhaustive list of medical products and procedures you can claim, including those that have occurred outside Canada.
With a little bit of research and planning, you can easily plan your way to a larger Medical Expense Tax Credit and reduce the amount of tax you pay at the end of the year.
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