Are individuals eligible for a tax credit for health care expenses on their personal tax return?
Health care expenses over a certain threshold entitle you to a tax credit. The threshold is determined by your net income. If your net income exceeds $58,500, the first $1,755 is non-deductible in determining your tax credit. Qualifying expenses will give rise to a 16% federal tax credit. Example: John’s net income is $50,000 Family expenditures on qualifying health care expenses are $2,000 Non-usable health care expenditures amount to $1,500 (50,000 x 3%) Federal tax credit equals $80 (16% of $500) MedicalTAX inc. Private Health Services Plan Example: John’s net income stays at $50,000 John receives from his employer $2,000 tax free dollars John’s employer has expenses for $2,160 (GST $11.20) MedicalTAX inc.
