Putting Your Medical Expenses to Good Tax Use
Nobody likes to be sick because of the way it makes them feel and then there are the added expenses that come with most illnesses. Even if it doesn’t warrant a doctor or a hospital stay, the over the counter medications are expensive. For more serious illnesses even though we have great medical coverage in Canada there can still be a lot of out of pocket medical expenses.
By keeping your receipts for all the medical expenses you incur throughout the year you may be able to use them as a claim on your income tax. Each expense on its own may not seem like much but accumulated they can really add up.
Your potential medical expenses that you may be able to claim go beyond those small pharmaceutical expenses. For example, you may be handicapped and cannot access your driveway properly so you can get proper access to a bus. You may be able to claim amounts that are reasonable to have your driveway altered to allow you to easily access the transportation.
With the recent swing to more alternative type medicines now, many people are not sure what constitutes as a valid medical expenses when it comes to their income tax. One of the simplest ways of determining if a medical procedure that is not covered under any of your medical plans is eligible as an expense or not is to determine if the procedure is purely for esthetic purposes or not. For example, a lot of people like to have electrolysis done for hair removal to improve their appearance. This would not be something you could claim as a medical expense on your taxes. Then there are people that suffer from medical conditions that create excess hair growth in unwanted areas and in this case electrolysis may be a valid medical expense because the excess hair growth is created by a medical condition.
If you are not sure if some of your medical expenses qualify for a deduction or not, be sure to bring them to the attention of your Toronto accountant. He will be able to determine if you can use them or not. Or, you can call the CRA yourself and ask them. Then there is an extensive medical expense claims list that you can refer to on the CRA’s website.
Your medical expenses are just one of many potential tax credits that may be available to you to help reduce your tax obligations. Be sure to give Sam Seidman, here at Toronto Accountant a call to set up an appointment to get your taxes done, so you will be sure you are getting all of the tax breaks you are eligible for.