How does my income affect how much I can deduct for medical expenses?
Your net income—not your total gross income—affects the amount of medical expenses you can claim as a deduction.
You can claim the total amount of eligible medical expenses minus $2,302* or 3% of your net income, whichever amount is smaller.
- Your net income is $25,000 for the year.
- Your medical expenses add up to $840.
- You can claim $840 minus $2,302 or 3% of your net income, whichever amount is smaller.
- 3% of your net income ($25,000) is $750. This amount is smaller than $2,302 so this is the amount we’ll use for our calculations.
- So you can claim $840 - $750 = $90 as a deduction.
If your total medical expenses are less than 3% of your net income, they can’t be claimed as a deduction.
Note: Only expenses, or portions of expenses, that haven’t been reimbursed to you can be included as medical expenses for income tax purposes.
* This amount is for the 2018 tax year.
- How do I enter my medical expenses?
- What medical expenses can I claim?
- How do I choose a claim period for medical expenses?
- Eligible medical expenses you can claim on your tax return (source: CRA)