Many taxpayers expect to receive a deduction for every cent they’ve paid in medical expenses. The amount you can claim is actually based upon your income. Since the medical expenses credit is designed to assist Canadians who have significant expenses over the course of a year, only a portion of your medical expenses translates to a deduction. From your total medical expenses, the eligible amount is 3% of your income or the set maximum for the tax year, which ever is less. For example, if your net income is $60,000, the first $1800 of medical expenses won’t count toward a credit. If your medical expenses total, $2000, only $200 will be applied to your bottom line.
Thank you for choosing TurboTax.
