If you have medical expenses for your spouse, dependent, and yourself, you can claim the medical expense tax credit.
The medical expense tax credit may claimed for any 12 month period ending in the tax year and is calculated as the total amount of medical expenses paid multiplied by the lowest tax rate (15% for 2009) in excess of the lesser of:
- 3% of net income, or
- the stated base amount ($2,011 for 2009).
Either spouse may claim the medical expense tax credit and therefore the lower income spouse should claim the medical expense credit if there is enough tax payable.
CRA Resources
Related Articles
- Line 303: Spouse or Common Law Partner Tax Credit Amount
- 2010 Federal Budget Summary
- Line 301: Age Amount Tax Credit
{ 6 comments… read them below or add one }
In regards to the disability tax credit, isn’t it true that the process of becoming eligible a tedious process? According to the CRA, the disability tax credit does seem like the Canadian government’s way of acknowledging the extra expenses that individuals with disabilities must endure.. but at the same time, the government does not make it easy to become approved for a disability tax credit according to a number of sources including a publication by the MS society. I’ve stumbled upon a few companies such as Canadian Disability Corporation, being the first at the top of my head, that helps ease the process. Their website is http://www.canadadisability.ca do companies such as this make a difference?
Jonothan:
I’ve not heard of these types of companies. If your disability is real, your doctor will complete the certificate. The CRA may challenge it! But the process “should” not be onerous. Any accountant can help.
Hi there – I complete my Grand-Parents tax return every year. Unfortunately my Grandmother had to stay in a Long Term Care Facility for the better part of 2009 due to a broken leg. The total medical expense for 2009 were $6,119.00. The software I’m using automatically put the medical expenses to my Grandfather’s return. His income was $19K and my Grandmother was $8K – no income tax was deducted on either of their Federal Slips and the medical expenses didn’t even make a difference in their refunds. Does that seem right to you? Everything I have read says if it’s more than 3% of your total income you should get around 15% back Federally and 6% back Provincially. Does it sound like I’ve done something wrong?
Any help would be greatly appreciated.
Hi Nykki:
The medical expense tax credit is a non-refundable tax credit. This means that the credit can only be used to reduce taxes payable to zero. If there was no tax paid, the credit is worthless.
If either is expecting higher income in the future, they can claim the credit for any 12 months period ending in the tax year.
Does the medical expense tax credit vary from province to province?
Ha. I’m game for an outbound link! At the federal level the credit is the same. Each province has their own version of the credit: the thresholds may be different.