What Healthcare Expenses are Tax Deductible in Canada?
If you’re a business owner and you are wondering what healthcare expenses are tax deductible in Canada, here are some key points to get you started.
Many of your healthcare expenses that are not automatically covered by OHIP, while not business expenses, are considered tax deductible in Canada. Whether you’re in the middle of tax prep or considering your tax needs for next year, it’s just as important to understand what is considered tax deductible as it is to understand what’s not.
For small business owners, medical costs not covered by OHIP are not considered business tax deductions, but you can, in many cases, deduct those expenses from your personal tax return.
Tax Deductible Medical Expenses
Many of your medical expenses that are not automatically covered by OHIP can be deducted from your tax return. These may include:
- Durable medical equipment. Do you need items like a wheelchair, prosthetic devices (including a prosthetic eye), or items that make it possible for you to use the bathroom, including showering, more independently? All of those costs can be included as tax deductions. You can also include the cost of leg braces, crutches,
- An attendant. Whether you require a personal attendant to assist you while in the hospital or an attendant who can assist you when you return home, in some cases, you can claim fees paid to that individual as tax deductions. Be sure to carefully check the circumstances under which you can claim a healthcare attendant.
- Braille assistance devices. If you need help from braille devices to assist with reading or writing, you can often claim those expenses as tax deductions.
- Fertility procedures. If you paid for procedures to help improve the odds of pregnancy, you can consider many of those expenses tax deductions.
- Diabetes supplies. You can include insulin as well as syringes and other injection devices.
- Laser eye surgery. If you need laser eye surgery to correct your vision, it represents a tax deductible expense.
- Nursing home expenses. When OHIP does not automatically cover a stay in a nursing home, you can use it as a tax deduction.
- Orthopaedic devices. You may need a prescription for special shoes or inserts to claim these expenses as a tax deduction.
- Postpartum care. You may face many care expenses after the birth of a new baby, many of which can be included as tax deductions.
Medical Expenses Not Considered Tax Deductible
Some medical expenses, unfortunately, are not tax deductions, and should not be included as such (with possible exceptions). These include:
- Birth control
- Membership in a fitness facility
- Blood pressure monitors
- Diaper services
- The cost of a surrogate
- Personal emergency response systems
Be sure to check the list carefully for what healthcare expenses are tax deductible in Canada to ensure that you do not try to claim a deduction for an expense not included on the list.
Do you need more help sorting out your finances and your taxes this year? Contact us to learn more about how we can help set you up for financial success.
- Ontario Staycation Tax Credit - March 23, 2023
- CRA mileage rates and reasonable automobile allowances - February 24, 2023
- Capital Cost Allowance: understanding leasehold improvement allocations - January 24, 2023