Credits & Deductions, Families, Getting Organized, Medical & Disability, Tips & Advice

Tax Tip: Which Dental Expenses Are Considered Deductible Medical Expenses When Filing Income Taxes?

Most, non-cosmetic, dental expenses are tax deductible when filing income taxes.  In order to fully understand what is deductible, what is not, how it is claimed and what all of that means, let’s take a look at the what makes them all deductible to begin with.

The Medical Expense Tax Credit (METC) is a non-refundable tax credit that you can use to reduce the tax that you paid or may have to pay. You can claim eligible dental expenses paid in any 12-month period ending in 2018 and which have not been claimed by you or by anyone else in 2017.

If you paid for dental work, you may be able to claim them as eligible medical expenses on your income tax and benefit return (T1), including:

  • Dental care
  • Dentures and Implants

Generally, you can claim all amounts paid, even if they were not paid in Canada and only the amount for which you have not been, or will not be, reimbursed.

Where to Claim Dental Expenses

Line 330 – Is where you claim the total eligible medical expenses you or your spouse or common-law partner paid for any of the following persons:

  • Yourself
  • Your spouse or common-law partner
  • Your or your spouse’s or common-law partner’s children born in 2001 or later

Line 331 – Is where you claim the part of the dental expense you or your spouse or common-law partner paid for any of the following persons who depended on you for support:

  • Your or your spouse’s or common-law partner’s children born in 2000 or earlier, or grandchildren
  • Your or your spouse’s or common-law partner’s parents, grandparents, brothers, sisters, uncles, aunts, nephews, or nieces who were residents of Canada at any time in the year

So on line 330 you claim the eligible dental expenses for you and your family, and line 331 is used for claiming dental expenses claimed for dependants.

What amounts can you claim?

Line 330 – You can claim the total of the eligible expenses minus the lesser of the following amounts:

  • $2,302
  • 3% of your net income

Line 331 – You can claim the total of the eligible expenses minus the lesser of the following amounts:

  • $2,302
  • 3% of your dependant’s net income (line 236 of their tax return)

 

Claiming Dental Expenses for a Deceased Individual

For a person who died in 2018, a claim can be made for expenses paid in any 24-month period that includes the date of death if the expenses were not claimed for any other year.

 

How Non-Refundable Dental Expenses Become Refundable

Whereas the Medical Expense Tax Credit is a non-refundable tax credit, the CRA has a refundable tax credit available for working Canadians who have higher medical expenses and low income, called the Refundable Medical Expense Supplement.

The refundable medical expense supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses who meet the income requirement and all of the following conditions:

  • You made a claim for medical expenses on line 332 of Schedule 1 or for the disability supports deduction on line 215 of your tax return.
  • You were resident in Canada throughout 2018.
  • You were 18 years of age or older at the end of 2018.

 

What Documents Are Needed To Support a Medical Expenses Claim?

  • Receipts – Must show the name of the company or individual to whom the expense was paid.
  • Prescription – If a prescription is required to support a claim.
  • Certification in writing – Required if certification in writing is a prerequisite for eligibility.
  • Disability Tax Credit Certificate – If CRA approved DTC is required.

If the person for whom you are claiming the medical expense is already approved for the disability tax credit for 2018, you do not need to send a new Form T2201.

Eligible Dental Claims

Most dental expenses can be used as medical expense deductions when filing your income taxes in Canada, including:

  • Dental services
  • Fillings
  • Cleanings
  • Dentures
  • Dental implants
  • Other dental work not paid by your insurance plan

Exception

The only exception is dental work that is purely cosmetic, such as teeth whitening.

 

Make sure you get to the dentist and have your teeth checked – and keep your receipts – because your mouth is a good indicator of your overall dental hygiene and your overall health.

TurboTax

If you have dental expenses to claim, and are using any TurboTax products, you will need to have the receipt to either give to the TurboTax expert preparing your tax return, or in order to enter the accurate amount into TurboTax itself.