Understanding the Impact of Medical Expenses in Canada: What You Need to Know
- Joshua McKillop
- Feb 14
- 2 min read
There are plenty of misconceptions and misnomers around medical expenses. What is eligible? What is not? How much can I claim? Is there a maximum? In this blog post, we will cover all of these questions and set you up to maximize your return!
What can I claim?
While this is not an exhaustive list, here are some expenses that qualify.
Prescription Medications
Only prescribed and pharmacist-recorded medications qualify. Over-the-counter drugs and supplements do not unless prescribed.
Dental and Vision Care
Basic dental services like cleanings and fillings are eligible, but cosmetic procedures aren’t. Prescription glasses, contact lenses, and laser eye surgery also qualify.
Medical Devices and Services
Eligible items include hearing aids, wheelchairs, prosthetics, and pacemakers. Home nursing care and long-term care facility fees may also be claimed with a doctor’s confirmation.
Travel for Medical Treatment
If treatment is unavailable within 40 km, transportation costs qualify. If traveling 80 km or more, accommodation and meals may also be deductible.
Mental Health and Therapy
Physiotherapy, chiropractic care, and psychological counseling from licensed professionals qualify.
Fertility and Reproductive Treatments
Expenses for in vitro fertilization (IVF) and similar treatments are deductible.
Service Animals and Medical Cannabis
Costs for certified service animals, including training and care, are eligible. Medical cannabis prescribed by a doctor also qualifies.
How do I claim medical expenses?
Keep all receipts and invoices.
Fill out Line 33099 (for yourself and dependents) or Line 33199 (for other dependents) on your tax return.
Only expenses that exceed the lesser of 3% of your net income or a set threshold ($2,759 for 2024) are deductible. This is a rule that is often misunderstood, and results in taxpayers saving paperwork that doesn't benefit them. Here is an example.
Let's say you have $2,000 in medical expenses.
If your net income is $10,000, 3% of that is $330. Since $330 is less than $2,759, you can claim medical expenses that exceed $300. Or put another way, you can claim $2000 - $300 = $1700. You can claim $1700 in medical expenses.
If your net income is $50,000, 3% of that is $1,500. Since $1,500 is less than $2,759, you can claim medical expenses that exceed $1,500. Or put another way, you can claim $2000 - $1500 = $500. You can claim $500 in medical expenses.
If your net income is $100,000, 3% of that is $3,330. Since $3,300 is greater than $2,759, you can claim medical expenses that exceed $2,759. Or put another way, because $2759 exceeds the $2000 in medical expenses, you aren't eligible to claim any medical expenses.
Despite how complicated it is, the whole point is to provide a higher benefit to lower income taxpayers, which is demonstrated above. For each taxpayer with $2,000 in medical expenses, they all received difference amounts of deductions due to their varying incoming levels.
Final Thoughts
Knowing which medical expenses qualify for tax credits can help you save money. Always check the CRA website for updates and keep records to support your claim.
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