0d64a633   
   XPost: can.general, can.politics, ott.general   
   From: CoalitionForCanada@notshaw.ca   
      
   Wow.  This posting is a keeper.  I thought we were claiming everything we   
   could at tax time,   
   but found at least 3 items in your posting that we have NOT been claiming:    
   medical PREMIUMS   
   (deducted at source), the actual DEDUCTIBLE AMOUNT, even tho' some of the   
   items within that   
   deductible did not qualify for reimbursement, and TRAVEL to out of town   
   appointments.   
      
   And to think, Revenue Canada does not specify these things in their 'tax   
   guides' every year.   
   Wonder why . . . ;->   
      
      
   "Alan Baggett"  wrote in message   
   news:4e0e2430-7af6-4c4d-a97a-93877698ac4e@d17g2000yqm.googlegroups.com...   
   Claiming Medical Expenses is Easier Than You Think : CRA SOTW   
      
   Published Monday October 11th, 2010   
   By Roger Haineault   
      
   Earlier this month, we visited our daughter Jenn at her new place in   
   Ontario.   
   She was excited and looking for that reinforcement that sometimes only   
   a parent can give. Anyway, while I was there she was telling me about   
   a medical procedure she had to have done for her smile that wasn't   
   covered by her medical plan.   
      
   Turns out the cost was in the thousands of dollars so, like a good   
   dad, I explained the tax rules (and you thought I was going to offer   
   to pay?).   
      
   Many people believe they don't qualify for the medical expense credit   
   on their tax return. However, eligible medical expenses over your net   
   income threshold qualify for a non-refundable tax credit worth about   
   25 per cent on your combined federal-provincial taxes.   
   Consider the most recent tax return we have filed. For the 2009 tax   
   year, the expenses must have been incurred in a 12-month period,   
   provided it ends in the year. It's possible that the period could be   
   defined as Nov. 1, 2008, to Oct. 31, 2009, if that is more   
   advantageous.   
      
   To calculate this, take the total medical expenses incurred by you and   
   your spouse and subtract three per cent of your net income. Someone   
   with $30,000 of net income has a $900 threshold to cross before they   
   can begin to claim.   
      
   The maximum threshold for 2009 is $2,011 on the provincial schedule   
   and $1,947 on the federal form. As a result, the lowest income spouse   
   should make the claim if he or she is taxable, as the income threshold   
   will be lower, thereby allowing for more expenses to be claimed.   
      
   One area of medical expense that is often overlooked is your premium   
   paid to acquire health insurance. Include your medical and dental   
   premiums, even if it's through your employer - provided you paid.   
   Another area that is sometimes forgotten is eyeglasses, since they   
   have become a fashion statement. However, if they are prescribed, they   
   are in. As an aside, claim only the amount of medical expenses you   
   actually paid, and were not reimbursed for.   
      
   You also want to claim the co-insurance portions not reimbursed by   
   your carrier. Typically these are 20 per cent of the bill and may also   
   have a user-pay deductible amount. Normally the deductible is in the   
   $25 to $50 range. Both the co-insurance and the deductible can be   
   included as a medical expense.   
      
   Most people think of travel as being a deduction for those who are   
   self-employed or on commission and drive to earn a living. While that   
   is true, it's also valid anytime you seek medical attention that is   
   not available in your home community and requires you to travel at   
   least 40 kilometres one way.   
      
   Although you've always been able to claim the actual expense, in the   
   past this has been unwieldy. To make it easier, the Canada Revenue   
   Agency (CRA) introduced the simplified method as an alternative way of   
   calculating the claim.   
      
   For 2009, it allows for a calculation based on a flat 50 cents per   
   kilometre in New Brunswick. It does not require receipts. All the   
   taxpayer requires is a log of the distance, which is easily available   
   in today's era of technology if you have access to the Internet.   
   Go to googlemaps.com and enter "your postal code to the facility's   
   postal code" and not only will directions and a map be displayed, but   
   the distance will be indicated. Don't forget to double the distance,   
   since one presumes it's a return trip. Take a print of this for your   
   records, in case you need proof. Then get a letter from the facility   
   showing the days you attended.   
      
   Someone 65 kilometres away from care can claim almost $70 with each   
   trip to the hospital. For those who have to travel 80 kilometres or   
   more one way, the claim is enhanced to include meals and   
   accommodation.   
      
   With the rationalization of health care, it's not unusual to hear of   
   people who must seek medical assistance in Halifax. A return trip to   
   the IWK Children's Hospital in Halifax represents about 900   
   kilometres, or approximately $450, under the simplified method.   
   The enhanced claim also allows for food to be expensed at $17 per meal   
   without a receipt, to a maximum of $51 a day per person. If   
   accommodation is required, documentation must be furnished if   
   requested. In either of these situations, if the patient is certified   
   as unable to travel without an attendant, an additional claim for the   
   travel costs may be made for a travelling companion.   
      
   If a taxpayer is off work, they might have received some form of   
   disability payment. If he paid for this out of his own pocket, or   
   fully funded it through his employer, this benefit is tax free and   
   should not be reported.   
      
   However, if the employer paid the total disability premium, the   
   taxpayer will be issued a T4A and the payment will be taxable. And if   
   the employee paid any of those premiums, he or she may deduct the   
   total that was paid since the last claim against this income and then   
   only report the difference.   
      
   The payroll department will be able to provide that value, and again,   
   document the file with a letter from your company.   
      
   Anyway, getting back to Jenn, the doctor's office provided her with   
   the opportunity to spread the payments out over 24 months. I suggested   
   that she give some consideration to trying to have it paid off before   
   the end of the year, so that she could maximize her medical expense   
   credit next spring, when she files her 2010 return.   
      
   Roger Haineault is with Help 4 Taxes. He can be reached by email at   
   roger@help4taxes.ca or by calling 443-HELP (4357). His column appears   
   Mondays.   
      
      
      
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