Ward & Uptigrove

Personal Tax Credits: Medical Expenses

March 1, 2021

Out-of-pocket medical expenses can be claimed as a non-refundable tax credit on your personal tax return, which is used to reduce the total tax payable. Non-refundable tax credits save tax at the lowest personal tax rates (15% federal and 5% in Ontario).


An individual is eligible to claim medical expenses for themselves, their spouse/common-law partner, and children under the age of 18, as well as medical expenses paid for certain family members that rely on the individual for support (children over 18, parents, grandparents, brothers, sisters, uncles, aunts, nephews, or nieces provided they are Canadian residents at any time during the year).


The total amount of medical expenses is reduced by 3% of net income for the year from line 23600, up to a maximum of $2,397 (for 2020). For example, if your net income is $100,000 and you have $5,000 of medical expenses, the actual amount eligible for a non-refundable tax credit is $5,000 - $2,397 = $2,603. This non-refundable tax credit would apply at the rate of 20% (for an individual in Ontario) or $520.


What Qualifies as a Medical Expense?

Some of the more common medical expenses consist of:

  • Dental and orthodontics
  • Prescription drugs
  • Eyeglasses
  • Treatments such as chiro, physio, massage
  • Incremental cost of gluten free foods for individuals with severe gluten allergies/celiac
  • Medical devices/appliances
  • Certain travel expenses incurred to obtain medical treatments
  • The cost of a naturopath treatment (but not the cost of natural vitamins/supplements)
  • Attendant care*


Only the amount paid out of pocket can be claimed (for example, if a company group benefits plan reimburses the expenses, they cannot be claimed).

Medical expenses do not have to be incurred in Canada to be eligible, however there are certain restrictions with respect to what can be claimed if the medical treatments were received in a foreign country and what travel expenses can be claimed.


* If an individual requires attendant care and/or lives in an assisted living facility, there are certain conditions including the individual’s eligibility for the disability tax credit that would impact the amount of expenses eligible that can be claimed.

Helpful Tips


  • Medical expenses can be claimed for any 12-month period ending in the taxation year. For example, if a large amount of medical expenses were incurred in October of 2020, then January of 2021 (i.e. dental treatments) you may be better off claiming them on the 2021 personal tax return for the period of October 2020 to September 2021 because of the baseline reduction of medical expenses
  • Consider timing the payment of medical expenses to maximize the tax credit available (i.e. if you have the capability to pay for a child’s orthodontics in one lump sum or monthly installments, paying the lump sum amount may result in tax savings that would not otherwise be available if you pay for the treatments in installments over several years)
  • For deceased individuals, medical expenses incurred in the 24 months preceding death can be claimed on the final personal tax return


Southwestern Ontario's Top Employers Award
February 5, 2025
We are th rilled to announce Ward & Uptigrove was selected as a recipient of the Southwestern Ontario's Top Employers Award for 2025. The award is based on the following criteria: 1. Workplace, 2. Work Atmosphere and Social, 3. Health, Financial and Family Benefits, 4. Vacation and Time-Off, 5. Employee Communications, 6. Performance Management, 7. Training and Skills Development, 8. and Community Involvement! Here are some of the reasons why Ward & Uptigrove was selected as one of Southwestern Ontario's Top Employers (2025): Ward & Uptigrove increased its full-time workforce in Canada by over 13 per cent in the past year and lets everyone benefit in the company's success with profit-sharing -- the company also offers generous referral bonuses of up to $5,000 per successful candidate as an incentive for employees to recruit friends Ward & Uptigrove hosts three major social events each year, giving employees the opportunity to unwind and connect with food, beverage and entertainment covered by the firm's partners -- events include a post-tax season party (employees plus a guest), a fall golf tournament, and an annual holiday celebration Ward & Uptigrove matches employee donations in kind, and encourages them to lend a helping hand in the community with a paid day off to volunteer Emily MacRobbie, human resources manager at Ward & Uptigrove, says clients appreciate the close connections and sense of care their small-town environment fosters. “We’re big enough to attract and retain some of the best and brightest minds in the industry, while simultaneously being small enough that staff and clients are known on a more personal level,” says MacRobbie. “Employees really appreciate the flexibility the firm offers, such as work location (in office or hybrid) and hours of work arrangements. We keep a pulse on what’s happening and make sure we remain competitive with things like paid time off and flexible health benefits.” To learn more about career opportunities at Ward & Uptigrove visit www.wardanduptigrove.com/careers
December 19, 2024
Accounting
June 27, 2024
Accounting
Share by: