“But the credit is designed to help those who have substantial medical claims. “Getting $600 back after out-of-pocket expenses of $4,200 may not seem like much,” says Dollar. And, if they lived in Ontario where the lowest rate is 5.05%, their total credit would be $601.50 (20.05% of $3,000). Say, after doing the math, the lower-income spouse had $3,000 in expenses over the minimum threshold (the lower-income spouse's net income for the year was $40,000, 3% of which is $1,200.If they were reimbursed through a health insurance plan for $6,000, their out-of-pocket medical expenses would be $4,200. Let’s say a family’s combined medical expenses, including health insurance premiums, were $10,200.*(Premiums refer to the monthly or annual fees you pay for insurance.)ĭollar, Director of Insurance Tax Solutions at Sun Life, provides the following example: But not any amount covered by your employer. You can claim only the portion of the premiums* you pay yourself. pays for medical expenses not covered by your provincial medical insurance plan.What if you need help managing your medical expenses?Ĭan you claim out-of-pocket health insurance premiums?.Can you claim out-of-pocket health insurance premiums?.Can you claim out-of-pocket medical expenses?.Can you use the credit to reduce your taxes for the year?.At what credit rate does the government give this credit?.Can you get a credit for unreimbursed medical expenses?.Here are answers to some of your questions about claiming your medical expenses on your tax return: Why? “Because getting the most from it requires some careful planning – including keeping all of your medical receipts.” “The Medical Expense Tax Credit may be one of the most underused tax breaks available to Canadians.” So says Stuart Dollar, Director of Insurance Tax Solutions for Sun Life. a portion of our health insurance premiums.the portion of the bill that I covered myself, and.What I didn’t know, however, until I went to file my tax return, was that I could also claim as a tax credit: That meant my health insurance at work could cover a portion of the expense. In our case, we were lucky in that respect because it was an accident. But, as I soon discovered, major dental reconstruction is a costly affair. His formerly perfect, orthodontically aligned two front teeth were no more. While he wasn’t badly hurt, his front teeth were. It was the call every parent dreads: “Your son’s been in an accident.” Fortunately, in my case, the next words I heard were, “But he’s all right.” After I caught my breath, I learned that my 19-year-old son had been in an accident.
0 Comments
Leave a Reply. |