One of the most underused tax credits
According to Canadian tax preparation firms, the medical expense tax credit is among the most underused tax credits or deductions. One reason is that many taxpayers aren’t aware of what expenses are allowable. For example, you can claim the costs of eyeglasses, contact lenses, laser eye surgery and orthodontics, and fees paid to a physiotherapist, chiropractor, or psychologist. If you have a group insurance plan through your employer, your out-of-pocket portion of dental costs is allowable and so is the portion of the premiums you pay for dental, medical, and vision benefits. For a complete list of eligible expenses, see the Medical Expenses publication RC4065 at canada.ca or IN-130-V at revenuquebec.ca.
You can combine the expenses for you, your spouse, and your children for a 12-month period – and either spouse can make the claim. But note that this credit isn’t for everyone. Expenses can only be claimed when they exceed either $2,421 (for the 2021 tax year) or 3% of your or your spouse’s net income. Usually, the lower-income spouse claims the credit.
