Medical Expenses Tax Credit-For Individual Tax Return

Medical expense is an important tax credit for an individual for saving taxes. The following points should be remembered for claiming medical expense tax credit:

1)      In order to claim medical expenses on the tax return, it should be prescribed by a medical doctor.

2)      Medical expenses can be claimed for any 52 weeks’ period which ends in the current taxation year which means that for the tax year 2015 any medical expenses for 2014 and 2015 can be claimed but only 52 week’s period can be chosen for it deductibility.

3)      Medical expenses that you can claim should be net of its reimbursement if any, claimed from anyone including the employer, insurance company etc.

4)      Medical expenses that are in excess of 3% of net income (Line 236) of the taxpayer, can only be claimed on the individual tax return subject to a maximum of $2208. Generally, it is beneficial for the spouse having lower net income (Line 236) to claim medical expenses.  

5)      Any spouse can claim medical expenses for themselves, their spouse, and children under 18.

6)      Medical expenses can also be claimed for any dependent which is in excess of 3% of the net income (line 236) of such dependent.

7)      Medical expenses not only include traditional medicines but also “needs based expenses” such as: voice recognition software, expenses required for modification of automobiles if prescribed for a disabled taxpayer, cost of an air conditioner if prescribed by the doctor etc.

Disclaimer: Any discussion on this blog relating to the tax matters is purely for educational purposes and not taking any specific actions based the general tax rules described therein. Your tax situation could be different and as a result there could be a different tax strategy in a particular case. We do not claim the tax situations described above to be exhaustive or conclusive. In case of any specific tax situation or a problem, you are advised to seek the professional advice.