Medical Expenses Tax Credit

August 08, 2013

Akiva Medjuck

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Claiming medical expenses on tax forms is important for people with disabilities. Being awarded disability tax credits mean the government of Canada recognizes you as having a severe and prolonged illness or handicap.

Significant medial costs may come with your diagnosis. Knowing how to claim these medical expenses will increase the amount of deductions applied to your income tax and bring about additional financial relief.

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Medical Expenses Tax Credit

Medical expenses tax credits are purposed to lower the amount of taxes paid by an individual so that he or she can afford necessary treatments and therapies. When these services are not offered where his or her local taxes are applied, there may be additional retribution granted for travel costs.

What Is A Medical Expense?

The definition of medical expense is broad. It includes:

– Any type of treatment or therapy
– Some travel expenses for treatment or therapy that are not available locally (this varies from case to case)
– Any adaptive equipment used for daily living
– Any life sustaining therapies or apparatuses
– A complete list can be found here: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/llwbl-eng.html.

What Is Not Considered A Medical Expense?

Approved medical procedures and treatment plans must be prescribed by medical professionals who deems an individual as having physical or mental impairments in some way, shape, or form.

Here is a list of medical expenses that would not be included in the tax credit:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/ntllwbl-eng.html

Claiming Medical Expenses

To secure a medical expenses tax deduction, it is necessary to fill our all tax forms correctly.

The following website link has an example of how to fill out the form so you can receive the maximum amount. It also explains how to calculate an accurate timetable for expenses that accrue during a one year period: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/hw-t-clm-eng.html.

Claiming medical expenses sounds like a lot of work but it may be easier than you think; it is part of a regular tax form and does not require additional processing. If you already qualify for the disability tax certificate, many of your medical expenses may also be applied to this tax reimbursement as well.

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Medical Expenses Tax Credit Medical Expenses Tax Credit

Do you pay a significant amount of money on medical expenses? Are regular treatment plans and therapies putting a strain on your budget? Does the cost of transportation quickly accumulate as these services are only available in locations near you?

If you answer yes to these questions, your expenses may qualify you for medical expenses tax credits. Be sure to know how to fill out tax forms appropriately so you are awarded the rightful amount of deductions. In addition, if these medical costs are the result of having a severe and prolonged disability, consider applying for the Disability Tax Credit.

The Disability Tax Credit is offered by the government of Canada to people with disabilities. Those who have mental or physical challenges that interrupt regular functions and daily routines, like work, may qualify for this tax benefit.

Being awarded the Disability Tax Credit can be a long and drawn out process. Many claims are rejected if they are not filled out correctly. Avoid this by having the benefit professionals at the National Benefit Authority assist you in filing your T2201 form. You can contact the National Benefit Authority for a free consultation and find out if your medical expenses are tax deductible.