An individual may claim a medical expense tax
credit for the amount determined by the formula in subsection 118.2(1) in
Income Tax Act. Under the formula, the lowest tax rate percentage (15% for
2012) is multiplied by the total of two calculated amounts. The first
calculated amount relates to medical expenses paid in respect of the
individual, the individual’s spouse or common–law partner and children under 18
years of age. The second calculated amount relates to medical expenses
paid in respect of other dependents of the individual.
Say for example, that you have incurred $3,000 in
total eligible medical expenses and your total income on line 236 is $51,000
from all the sources so according to the formula:
Medical
expenses
$3,000
Minus lesser of 3% of 51,000 or $2,109 (annual
threshold)
-1,530
Subtotal 1,470
Subtotal 1,470
Allowable medical expenses credits 15% of 1,470 =
$220.50
Subsection 118.2(2) describes the types of
medical expenses that are eligible for the medical expense tax credit.
Additional requirements for paragraphs 118.2(2)(m) and (n) are provided in sections 5700 and 5701
of the Regulations, respectively. If a particular expenditure is not described
in subsection 118.2(2) (or does not satisfy the additional requirements in
sections 5700 or 5701 of the Regulations, here paragraphs 118.2(2)(m) or (n)
as applicable, are relevant), the expenditure is not eligible for purposes of
claiming a medical expense tax credit, even though the expenditure may have
been incurred for medical reasons.
Gluten-free food
The incremental cost of acquiring gluten-free
food products compared to the cost of comparable non-gluten free food products
may be eligible medical expenses under paragraph 118.2(2)(r). The cost
must be incurred on behalf of a patient who has celiac disease and who has been
certified in writing by a medical practitioner to be a person who, because of
that disease, requires a gluten-free diet.
Medical
marihuana
If a patient is authorized to possess marihuana
for medical purposes under the Marihuana Medical Access Regulations orsection 56 of the Controlled Drugs and Substances Act, the cost of the medical marihuana or marihuana seeds may
qualify as medical expenses under paragraph 118.2(2)(u).
Cosmetic
Procedures
An amount that may otherwise be an eligible
medical expense described under subsection 118.2(2) may be denied pursuant to subsection 118.2(2.1) if the service was provided purely for
cosmetic purposes.
Receipts
Generally, all expenses claimed as eligible
medical expenses must be supported by proper receipts. A receipt should
indicate the purpose of the payment, the date of the payment, the patient for
whom the payment was made and, if applicable, the audiologist, dentist, medical
doctor, medical practitioner, nurse, occupational therapist, optometrist,
pharmacist, physiotherapist, psychologist, or speech-language pathologist who
prescribed the purchase or gave the service. A cancelled cheque is not
acceptable as a substitute for a proper receipt. In addition to receipts, proof
of payment or proof of support may be required in situations where an
individual claims the medical expenses tax credit for amounts paid in respect
of a dependant who is 18 years of age or older at the end of the year.
A complete list of eligible medical expenses is
available on Canada Revenue website http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/llwbl-eng.html
