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Tax Tips - February 25, 2002

Claim Medical Expense Credit
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You can claim medical expenses paid in any 12-month period ending in 2001 and not claimed for 2000. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses have to be more than either 3% of your net income or $1,678, whichever is less.

You can claim expenses for yourself, your spouse and any close relative who is dependent on you for support, including your child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew, or any of those relatives of your spouse. But that person must be resident in Canada, except for your or your spouse's child or grandchild.

The most common medical expenses you can claim are:

payments to a medical doctor, dentist, nurse, or certain other medical professionals, or to a public or licensed private hospital;

premiums paid to private health services plans (other than those paid by an employer) and premiums paid under the Quebec Prescription Drug Insurance Plan;

payments for artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, prescription drugs, and certain prescription medical devices;

amounts paid for attendant care, or care in an establishment (see the Information Concerning People With Disabilities guide); and

expenses relating to guide and hearing-ear dogs.

t is advisable to combine your family's medical expenses on one return, since there is a threshold of 3% of net income. Depending how valuable the credit may be, you may choose who to make the claim, either the lower-income spouse or the high income spouse.