Medical Expenses

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Did you know that by keeping the receipts of your prescriptions, dental visits, or physiotherapy sessions you could save money on your tax return? These are all examples of valid Medical Expenses that can be used as a tax credit to reduce the tax you owe the government.

For a full list of valid Medical Expenses please visit the Canada Revenue Agencies list Canada Revenue Agencies Valid Medical Expenses.

Now that you have an idea of what qualifies, lets dig a little deeper to get you even more money back. For this I’ll use an example of a common scenario that I deal with regularly.

John and Jane are 50 years old, married and live in Nanaimo B.C. John has been having a series of heart problems and will require open heart surgery. This will require John going to Victoria for treatment and requires Jane to go with him as he won’t be able to drive himself home. John and Jane drive 120 km to the Victoria hospital. John checks into the hospital for surgery and Jane checks into a hotel for the night. John comes out of surgery in good health and after picking up his prescriptions he is cleared to go home. John and Jane drive home later that night.

In this scenario John knows that he can write off his prescription as a medical expense. What John doesn’t know is that he can write off the 240 km they had to drive, the hotel accommodation for Jane, and $102 per day for food. In this situation the vehicle expenses, accommodation expenses, and food expenses are all reasonable expenses incurred due to a medical expense.

The most important thing to keep in mind with expenses is to always keep your receipts. While certain things like food and km’s driven can be written off using simplified methods, other expenses like dental visits, and prescription drugs must have a receipt in order to claim them.

If you are unsure whether or not your expense will be considered a valid medical expense for tax purpose please feel free to call the professionals at First Choice Tax Services 1 (250) 753-7888.