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 amount of medical expenses that are over and above 3% of your net income, up to $2,302*, whichever is less.
Here’s an example:
- Your net income is $25,000 for the year.
- You can claim medical expenses if they are over $750 (3% of $25,000).
- Your medical expenses add up to $840, so you can claim $840 - $750 or $90 as a deduction.
If your total medical expenses are less than 3% of your net income, they cannot be claimed as a deduction. In addition, remember that only expenses, or portions of expenses, that have not been reimbursed to you can be included as a medical expense for income tax purposes.
*This amount is for the 2018 tax year. For previous years’ medical expense thresholds, check the CRA website.