Claiming Medical Expenses on Your Tax Return
From dental work to gluten-free food, the list of eligible medical expenses is long. Learn how to bundle them for the biggest refund.
Claiming Medical Expenses on Your Tax Return
The Medical Expense Tax Credit (METC) is an underutilized goldmine for many Canadian families.
How it Works
It is a non-refundable credit. You can claim eligible medical expenses paid for yourself, your spouse, and your children.
The Threshold: You can only claim expenses that exceed 3% of your net income or $2,635 (whichever is lower, 2024 threshold indexed).
Strategy: Because of the threshold, it almost always makes sense for the lower-income spouse to claim the medical expenses, as their 3% threshold will be lower to reach.
What is Eligible?
- Prescription drugs
- Dental services
- Eyeglasses and contact lenses
- Laser eye surgery
- Orthodontics
- Private health insurance premiums (deducted from your pay)
- Travel for medical services (if > 40km away)
- Glue-free food (the incremental cost) for Celiacs
What is NOT Eligible?
- Gym memberships
- Over-the-counter vitamins and supplements
- Cosmetic surgery (purely for looks)
You can claim expenses from any 12-month period ending in the tax year, not just the calendar year. Pick the 12 months with the highest costs!