Year-End Tax Planning 2018: Medical Expenses

This is the first in a series of tips about planning for the end of the taxation year. This tip applies to anyone who has medical expenses.

As you may know, you can only claim medical expenses as a credit on your personal tax return when the medical expenses exceed 3% of your net income. There is an annual maximum. In 2018 it is $2,302, even if you make a million dollars a year. After you have $2,302 in medical expenses you will be eligible for a medical tax credit.

At this time of the year, you might want to add up your medical premiums, prescriptions, eye glasses, dental etc. and see how much you have already spent in 2018. If you are over the 3% of your net income, then anything else you spend money on would save you taxes. So you might consider getting that root canal, new hearing aids or the new glasses. If you are going to need some medical treatment soon, it could be to your benefit to do it before the end of 2018 and take that tax deduction in 2018.

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