Personal Tax Credits.

Medical expenses qualification (by frank and need to confirm)

  •  For other dependent(grandparents, niece, nephew), up to $10,000. schedule 5, as long as medical expenses paid by tax payer. (Yes)
  •  Medical expenses incurred in oversea such as U.S, China also qualify (Yes, as long they are eligible medical expense)
  • Medical expenses incurred in Canada for my visitor mother’s medical expenses. Not qualify in tax law, can be done in practice

 A tax payer can claim medical expense credit as long as the expense is paid by the taxpayer or his/her common law and these expenses must be used for the taxpayer, taxpayer’s spouse, child below the age of 18 of the taxpayer or a dependent of the taxpayer. If the expense are reimbursed by an insurance company, then the reimbursed portion cannot be use to claim the credit; only the non-reimbursed portion can be used.

The medical expenses must be proven by filing receipts and must be paid within any 12-month period ending in the year unless the individual dies in the year. Where the individual dies in the year, the medical expenses must be paid by the claimant for the deceased person within any period of 24 months that includes the date of death

For a list of eligible medical expense, please refer to IT-519R2 from the CRA.

 

How to compute?

A[(B-C)+D]

A = The percentage for the taxation year

B = Total of an individual’s medical expenses for himself, his spouse and his children who have not reached 18 years of age at the end of the year

C = The lesser of 3% of the individuals net income and $2052

D = The total of all amounts for the dependents of the taxpayer; the lesser of $10,000 and the amount of E-F. Where E is the total medical expense of the dependant. F is the lesser of 3% of the dependent’s net income and $2052

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