What is the Medical Expense Tax Credit (METC)?
While medical services can be expensive, the Federal and Ontario governments offers an opportunity to lessen the financial burdens of healthcare. The Medical Expense Tax Credit (METC) is a non-refundable tax credit (different than a refundable tax credit; more information can be found here) that can be used on eligible expenses incurred by an individual or a dependent. This blog post will dive into the application process, eligible expenses, and how to calculate your claimable amount.
How can I apply for the METC?
This credit can be claimed when you file your annual T1 Income Tax and Benefit Return. When claiming this credit do not send any supporting documents with your return, but make sure that you maintain a record of the claimable expenses.
Maintain Records: Keep any receipts, invoices, prescriptions, and other documentation that prove you have incurred these medical expenses throughout the year. Proper documentation ensures a successful claim of this tax credit.
Calculate Total Medical Expenses: You can claim expenses paid for medical expenses in any 12-month period ending in the current tax year. This allows for additional flexibility to reach the minimum threshold required to claim the credit.
Calculate Claimable Credit: The claimable amount is determined by a threshold, which means claimable expenses must be over a certain percentage of your net income.
Threshold = Whichever amount is lesser between 3% of your net income or $2,635
Total Medical Expenses – Threshold = Claimable Amount
(Please note slight variations in the threshold as to how this is calculated federally and provincially. Federally, you receive a 15% non-refundable credit on the claimable amount and provincially receive 5.05%).
File your Tax Return
To claim the credit, you will complete the Medical Expenses worksheet and use line 33099 or 33199 when filling your taxes. If you are claiming medical expenses for yourself, spouse, or common-law partner, use line 33099. If you are claiming for a dependent, use line 33199.
What expenses are claimable?
There are many categories of expenses that may be eligible for this non-refundable tax credit. The list below covers a majority of common claimable expenses covered by the Medical Expense Tax Credit and can be used as suggestions throughout your application. Be sure to verify with the current CRA guidelines if you are unsure about any details.
- Attendant Care: Includes nursing homes, full-time attendants, institutional care services, and more.
- Prescriptions: Many prescription medicine prescribed by physicians can be claimed under this credit.
- Medical Devices and Aids: Devices such as hearing aids, wheelchairs, crutches, respiratory devices, and more.
- Medical and Hospital Services: Fees paid for hospital stays, rooms, fees paid to medical professionals, may qualify for the credit.
- Vision and Dental Services
- Travel Costs: related to healthcare.
Choosing You Clinic offers services that may be claimable under this credit, including…
You can ask your therapist for a letter of certification for the METC claim if needed.
As you navigate through the tax season, keep in mind the Medical Expense Tax Credit. By keeping a good record of your expenses and understanding how to apply to this credit, you can save as much as possible and utilize this valuable opportunity to the fullest.
For more information, you can visit this link to view the tax folio for medical expenses.
