Many Canadians don’t realize just how many medical expenses they can claim on their taxes. From prescriptions to elder care, claiming eligible medical expenses could mean significant savings—if you meet the right criteria. In this post, I’ll walk through what counts as an eligible expense, how to calculate your claim, and what common mistakes to avoid so you can maximize your tax credits.
Video Transcript: Claiming automobile expenses personally vs corporately
There are a host of potentially unexpected credits available for medical expenditures.
There’s a list from Revenue Canada. You can go online to take a look. And again, please do. Some of those items may surprise you. I won’t get into a list of those. It’s quite extensive, but I will also point out there are some restrictions with respect to the medical expenses beyond what a qualifying expenditure is, and that’s the amount that is spent.
Generally, you have to spend a little bit under $3,000 for the year, or 12 months to be more specific, or 3% of your income. Amounts less than that will not provide you any form of credit.
So take a look, ensure you have receipts, ensure that you’ve paid the amount during the year as compared to just having a bill for the amount, and take a look at your 12 months. Decide what 12-month period you would like.
Unfortunately, this is an area that’s frequently audited by Revenue Canada. There are also a host of additional rules that add to the complexity in dealing with elder care and different expenditures and credits that are otherwise allowed, such as nursing home expenses and related costs.
So take the time or have your advisor be aware of what’s going on so they can help you maximize your credit.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Resources
For additional resources related to how to maximize tax deductions such as claiming eligible medical expenses, see:
- 2025 tax season tips: How to save more this year
- Medical expenses you can claim
- Deducting interest expenses: The most missed tax deduction
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
