Sunday’s= Personal Tax
A Canadian taxpayer can take a tax credit for medical expenses, subject to a few rules. One of those rules concerns the amount you can claim. You can only get a credit for the amount of medical expenses that exceed 3% of your net income or an annual maximum, whichever is less. For Example — a person with a net income of $15,000 can get a credit for any medical expenses amount over $450. A person with a net income of $100,000 can only get a credit for any amount of medical expenses over the annual limit, which is usually around $2,500.
Due to this rule we are always attempting to figure out if we have enough medical expenses to claim so far this year. Once we hit the magic number any expenses we incur over that amount will create a credit.
The medical premiums you pay are considered to be a medical expense. This includes medical premiums and dental premiums that may be being deducted from your paycheque. You can also deduct the medical travel insurance you buy when you leave the country, just make sure the insurance is for medical expenses, and not travel delays.
When you are thinking about the amount of medical expense you have to claim don’t forget about your premiums.