XPost: can.general, can.politics, ott.general   
   From: Neil@deetspris.com   
      
   "CoalitionForCanada"  wrote in message   
   news:HRlvo.12447$7i4.9556@newsfe09.iad...   
   > 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.   
   >   
   >   
   >   
   > -----------------------------------------------------------   
   > Miss a Tax Tale Miss a lot!   
      
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