2014 tax credit for medical expensesLinkedIn
There, in black and white
NB Bulletin Vol. 18 N. 2, February 2015
For the 2014 tax year, a tax credit ranging from 4% to 20% of incurred medical expenses(1) could be granted to Canadian taxpayers. The credit is subject to certain conditions and depends on the province of residence.
Compared with 2013, besides the indexing of the minimal threshold to qualify for a tax credit in certain provinces, no changes have been made in relation to the tax credit calculation or to the eligible expenses.
To consult the information bulletin published by Normandin Beaudry in 2014, click here.
Below are a few examples of eligible medical expenses (maximums may apply). Please note that tax credits cannot be claimed for the portion of eligible expenses that is reimbursed through an insurance plan.
For a complete list of eligible expenses, consult Document RC4064 “Medical and Disability-Related Information 2014” issued by the Canada Revenue Agency. For residents of Quebec, consult Brochure IN-130 "Medical Expenses" issued by the provincial government.
Taxpayers can claim tax credits for eligible medical expenses for themselves and their dependents, i.e. individuals that they supported and that lived with them, or were dependent on them because of a disability. A dependent can be the child, parent or spouse of the taxpayer, or almost any other individual related to the taxpayer.
To qualify as eligible expenses, the medical expenses must have been paid during a period of 12 consecutive months ending in 2014. Medical expenses paid in 2013 can thus qualify as long as the time between the payment date of the first expenses claimed and the payment date of the last expenses claimed does not exceed 12 months. Expenses submitted for a tax credit must not have been used in 2013 tax return and must have been paid no later than December 31, 2014.
To qualify for a tax credit, the total eligible medical expenses must typically exceed the lesser of the following amounts:
(A) Three percent (3%) of the taxpayer's net income for the tax year
It is important to note that credits in excess of the amount of the income tax to be paid are not reimbursed (non-refundable credits).
We invite you to read the next section to learn about aspects specific to each province, especially Quebec.
Specific aspects by province
Some aspects pertaining to eligible expenses and the tax credit calculation are specific to the taxpayer's province of residence. Therefore, it is important to always consult the appropriate income tax guide.
For example, the threshold to qualify for a tax credit in 2013 (see B of the previous section) is $2,171 federally and varies between $1,637 and $2,298 provincially. Although expenses incurred by dependents are no longer subject to a maximum (federally or in most provinces), a maximum continues to apply in some provinces including Ontario ($11,797).
Quebec tax credit calculation
Unlike elsewhere in Canada, in Quebec, a single tax credit calculation applies to the taxpayer and all his eligible dependents.
To qualify for a tax credit, the total eligible medical expenses must exceed 3% of the family income. There is no maximum credit for each dependent. Thus, in Quebec, there is no tax benefit in claiming all of the medical expenses on the tax return of the spouse with the lower income.
The information presented in this bulletin does not constitute an official opinion for tax purposes. For more information regarding tax returns, please consult a tax professional or visit the Canada Revenue Agency website at cra-arc.gc.ca and the Ministère du Revenu du Québec website at revenuquebec.ca.
(1) Lines 330 and 331 of the federal tax return,
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