Personal Finance

How much can you get back from medical expenses? (Filing tax)

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  • Jan 28th, 2009 5:49 pm
Deal Addict
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Jan 22, 2008
2463 posts
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How much can you get back from medical expenses? (Filing tax)

My sister will undergo some kind of laser procedure for her pimple marks and it will cost 3100. She was told that she can include that as medical expense.

How much would she normally get back for that amount? Thanks
4 replies
Moderator
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Aug 22, 2003
15532 posts
957 upvotes
Niagara Falls
Depends on a lot of variables including her income. Run the numbers through a tax program with her specifics to get an idea...
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
Sr. Member
Sep 9, 2005
669 posts
44 upvotes
Toronto
It's been some time since I prepared tax returns for a living, but unless things have changed, wouldn't this be considered an elective cosmetic procedure, hence, not deductible/creditble?

I definitely stand to be corrected on that though. :)
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Aug 30, 2003
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Salinger wrote:
Jan 28th, 2009 8:52 pm
It's been some time since I prepared tax returns for a living, but unless things have changed, wouldn't this be considered an elective cosmetic procedure, hence, not deductible/creditble?

I definitely stand to be corrected on that though. :)
nope, it is deductible. expenses must total at least the lesser of:

~2000$
3% net income
Deal Addict
Jun 8, 2004
1257 posts
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Oakville
If she made more than $65,400 and this was incurred in 2008, then she would get (3,100 - 1,962) x 15% = $170.70 in non-refundable federal tax credits.

If she made less than $65,400 and this was incurred in 2008, then she would get (3,100 - (3% x income)) x 15% in non-refundable federal tax credits. Also, non-refundable tax credits can only help reduces federal income taxes payable to zero.

A similar calculation for non-refundable Ontario tax credits exists, which is 3,100 - (the lesser of 3% x income, or 1,965) x 6.05%.

For Alberta, non-refundable tax credits is 3,100 - (the lesser of 3% x income, or 2,088) x 10%.

Again, she won't get anything back on the medical if she doesn't make enough income to have any federal and/or provincial taxes payable.
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