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Unexpected Medical Expenses - How to recoup your loss! C2online

Medical expenses can be an unexpected expense.  Ensuring that you take advantage of every claim opportunity when filing your income tax will save you money. 

We have wrote several times on missed medical claims.  A recent article written by CBC senior writer, John Hembry about 10 medical tax deductions that can save you money, caused us to provide our readers further information.

 He says, “Most people are aware they can claim the medical expenses tax credit, but many don’t keep a running tally because they simply forget or don’t think it will add up to worthwhile savings, tax experts say. For many people, that's a potentially costly mistake.”

Hembry talks about the disability tax credit.  Darlene Lafond from C2Online, a registered public accountant adds that we need to consider, what if a family member is dependent on another family member for food or shelter or clothing – any essential life support on a routine basis: You should discuss with them if they qualify for the dis ability tax credit T2201.They may not require the disability tax credit on their taxes but if the support person needs it, they may be able to transfer any unused disability tax credit to them just because they are providing essential life support, even if the person does not live with the person providing support. Learn more to claim at How to Transfer.

 In addition, Hembry talks about travel expenses related to individuals who live in rural communities and are traveling more than 40 km one way for medical reasons can claim the trips on their personal tax return for a medical deduction.  Keeping a diary of the trips taken for medical reasons to use for a medical deduction on their personal tax return. However, it is critical to know and record the total number of kilometers driven during the year for any medical purposes when you have traveled over 40 km one way. Need a form to help you claim, check out this form Deduct the travel.  Intuit’s Turbo Tax also provides you help how to claim.

Remember when you claim medical deductions on your income tax return to always consult with you an accountant and ensure the expense you are claiming is accurate and examine if you are missing any other claims.

 


10 medical deductions that can save you money Lisa Patrick

Tom McFeat  recently wrote an article in CBC News  about your medical expenses. In the article as a tax payer you were advised that ‘you do need to do some homework, in terms of keeping your medical expense receipts.’ It's something that is not easy to do over the course of a year unless you make a conscious effort to put the receipts aside.’

At C2online our tools will help you to ensure you maximize on these claims, save money and save time by simplifying the tasks for you:

Deduct your Gluten Free Groceries: You must calculate the incremental cost to ensure you receive the medical expense claim.  Incremental cost is the increased cost of purchasing a GF product as compared to the cost of a similar non-GF product. It is calculated by subtracting the cost of a non-GF product from the cost of a GF product. C2online provides the calculation in your worksheet for you.

Deduct the travel: If you are traveling more than 40 km one way for medical reasons, you can claim the trips on your personal tax return for a medical deduction.  Keep a diary of trips taken for medical reasons to use for a medical deduction on your personal tax return a medical critical to know the total number of kilometers your automobile was driven during the year for any medical purposes when you have traveled over 40 km one way. 

The article suggests you contact your drugstore for a complete list to save time – We have a form to request for medical receipts from your pharmacist.

Eligible expenses that you claim can get missed and this list states the ones most commonly missed.

Disability tax credit will provide those taxpayers that are the in-home caregivers to a parent or grandparent age 65 or older.  You need help to ensure that you are claiming this eligible credit correctly and receiving the appropriate amount of credit this tool will assist you.


Disability Tax Credit - Transfer - How to? Lisa Patrick

Disability Tax Credit

If a family member is dependent on another family member for food or shelter or clothing – any essential life support on a routine basis: You should discuss with them if they qualify for the disability tax credit T2201.

They may not require the disability tax credit on their taxes but if the support person needs it, they may be able to transfer any unused disability tax credit to them just because they are providing essential life support, even if the person does not live with the person providing support.
 
Federal                                 provincial
Disability tax credit transfer                 line 318                        5848

If a disabled person lives with you….claim…
 
Amount for infirm dep over 18            line 306                        5820
Caregiver credit                                   line 315                        5840

*NOTE:  Do not forget to explore medical claim as well.

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