Medical Tax Credits in Canada

Medical Tax Credits

What are Medical Tax Credits?

• A non-refundable tax credit that reduces the amount of income tax owed
• Available to individuals who have incurred medical expenses

Eligible Medical Expenses

• Includes expenses that are not reimbursed by insurance or other programs
• Examples:
  • Doctor and hospital fees
  • Prescription medication
  • Medical devices and equipment
  • Travel expenses for medical treatment
  • Home renovations for accessibility
  • Caregiver expenses

Claiming Medical Tax Credits

• Keep receipts and records of medical expenses
• Claim expenses on Line 33099 of the tax return
• Complete Form T1-M, "Medical Expenses", and attach it to the tax return
• Can claim expenses for yourself, your spouse, and your dependent children

Minimum Threshold

• Must have medical expenses exceeding 3% of net income or $2,393 (2022), whichever is less
• Threshold is reduced for seniors (65+ years) and those with disabilities

Carry-Forward Rule

• Can carry forward unused medical expenses for up to 5 years
• Apply carried-forward expenses to the next year's tax return

Transferring Medical Expenses

• Can transfer medical expenses to a spouse or common-law partner
• Complete Form T1-M and attach it to the spouse's or common-law partner's tax return

Medical Tax Credits

• A non-refundable tax credit that reduces the amount of income tax owed, available to individuals who have incurred medical expenses.

Eligible Medical Expenses

• Includes expenses not reimbursed by insurance or other programs.
• Examples of eligible expenses:
• Doctor and hospital fees
• Prescription medication
• Medical devices and equipment
• Travel expenses for medical treatment
• Home renovations for accessibility
• Caregiver expenses

Claiming Medical Tax Credits

• Keep receipts and records of medical expenses.
• Claim expenses on Line 33099 of the tax return.
• Complete Form T1-M, "Medical Expenses", and attach it to the tax return.
• Can claim expenses for yourself, your spouse, and your dependent children.

Minimum Threshold

• Must have medical expenses exceeding 3% of net income or $2,393 (2022), whichever is less.
• Threshold is reduced for seniors (65+ years) and those with disabilities.

Carry-Forward Rule

• Can carry forward unused medical expenses for up to 5 years.
• Apply carried-forward expenses to the next year's tax return.

Transferring Medical Expenses

• Can transfer medical expenses to a spouse or common-law partner.
• Complete Form T1-M and attach it to the spouse's or common-law partner's tax return.

Learn about medical tax credits, eligible expenses, and how to claim them in Canada. Understand what medical expenses are eligible for tax credits and how to reduce your income tax owed.