Your total expenses must be more than either 3% of your net income or $2,024, whichever is less.
Your medication cost $400. Your insurance paid 80% ($320) and you paid the remaining 20% ($80). You can claim the $80 that you paid.
Your son's new braces cost $1,600 for the first consultation and $2,000 more over the next 10 months, for a total of $3,600. Your insurance plan covered 50% of the cost to a maximum of $1,500 and you paid the rest. You can claim the $2,100 that you paid.
Your new glases cost $375. Your insurance company paid their maximum of $250; your spouse's insurance paid the remaining $125. You cannot claim any of the expense, because you were fully reimbursed.
For a complete list of what you can claim as medical expenses, visit the CRA Web site at http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/llwbl-eng.html, or get the CRA publication IT519, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction.
Medical expenses for your spouse and dependant children 18 and under are claimed at line 330. The allowable amount of medical expenses for other dependants is claimed at line 331, and is subject to a maximum of $10,000.
You can claim medical expenses paid in any 12-month period ending in 2010 and not claimed for 2009. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses must be more than either 3% of your net income or $2,024, whichever is less.
If medical treatment is not available to you within 40 kilometres of your home, you may be able to claim the cost of travelling to get the treatment somewhere else. You can choose to simplify the way you calculate this amount. For more information, use Info-Tax, one of our T.I.P.S. services. services. If you use the simplified method, you can find the rate per kilometre for each province or territory by going to www.cra.gc.ca/travelcosts.
If you had to travel at least 80 kilometres from your home, you can deduct accommodation and meal expenses in addition to your travelling expenses.
For more information on medical expenses, go to www.cra.gc.ca/medical or use Info-Tax, one of our T.I.P.S. services. You can also see Guide RC4064, Medical and Disability-Related Information, and Interpretation Bulletin IT-519, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction.
|Jenny (their 16-year-old daughter)||$1,800|
|Kyle (their 19-year-old son)||$1,000|
|Total medical expenses||$5,300|
The total allowable expenses for 2010 are $4,300 which will be entered on line 330. As Kyle is older than 18 years of age, his expenses will be reported on line 331.
Paula's net income on line 236 of her return is $32,000. She calculates 3% of that amount as $960. Because the result is less than $2,024, she enters $960 on the line below line 330 on Schedule 1 and subtracts it from $4,300. The difference is $3,340, which is the amount (A) above line 331.
Rick's net income on line 236 of his return is $48,000. He calculates 3% of that amount as $1,440. Because the result is less than $2,024, he enters $1,440 on the line below line 330 and subtracts it from $4,300. The difference is $2,860.
In this case, Paula and Rick have found it better for Paula to claim all the expenses for them and their daughter Jenny.
If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach all documents for yourself and documents for the person you are claiming (other than for premiums paid to a health services plan, which you should keep in case we ask to see them). Receipts must show the name of the company or individual to whom the expense was paid. Receipts for attendant care or therapy paid to an individual should also show the individual's social insurance number.
You may be claiming expenses that would be allowable only for a patient who qualified for the disability amount. For information about the disability amount, see line 316.