Hi, My wife is on Mat leave presently. She has a health care plan at work that she pays into. This is not covered while on Mat Leave.

[leggeian]

She works for a hospital and in order to maintain her benefits while on Mat leave, she is paying privately into it monthly. Can the amount paid while on Mat Leave be claimed as a medical expense?

[fuzzy · Accepted solution]

For more info, please see

Medical expenses:   http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330-331/menu-eng.html

How to change a return:  http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/chngrtrn-eng.html

[fuzzy]

Yes.  The premiums she is paying to a private health services plan are eligible medical expenses.

[leggeian]

Thank you! I was wondering if I can also claim my employee-paid premiums for private health services plan? (Blue Cross)

[fuzzy]

Yes, you can claim these as well.  Also, it is generally more beneficial to combine and claim all of your eligible medical expenses on one spouse's return and usually on the return of the spouse with the lower net income because of the 3% threshold.

[leggeian]

Great! I also now realize that I did not claim medical expenses last year (and others probably) for my premiums paid. Is it possible to claim this year from previous years that I did not claim?

[fuzzy]

No.  You can only claim eligible medical expenses for a 12-month period ending in the year.  You will have to file a T1-Adj to have your prior returns adjusted.  Before you do this, you will want to ensure that your medical expenses exceed 3% of your net income (or the maximum threshold amount)  If your income is quite high and you have minimal medical expenses, there may be no benefit to claiming the expenses.

[leggeian]

Thank you. So between my wifes and my incomes, the 3% of the net income applies to the higher or lower income earner?

[fuzzy]

It applies to the spouse who is claiming the medical expenses.  ie)  spouse A has a net income of $100,000.  Spouse B has a net income of $30,000.  It is more beneficial for spouse B to claim  all of the medical expenses as only their  net income ($30,000)  is considered in calculating the credit.

[leggeian]

Thanks for all your help fuzzy! much appreciated!