I have health insurance but it doesnt' cover certain over the counter medications. I spend approximately $400 a year on these. If I get them with a doctor's prescription, it costs me about $460 a year, BUT I can claim it on my income tax. Is the benefit of claiming this amount on my income tax greater and enough to justify the extra cost of $60? (income @ $31,000)
Actually, that first answer is wrong - maybe he didn't realize he was in the Canada taxes section. You can claim any medical expenses that exceed 3% of your NET income. I have no way of knowing what your net income is, but I'm guessing that it is probably too high for you to deduct medical expenses anyway. If it IS low enough to allow you to claim the medical expense, then you are in a really low tax bracket, so not likely the $60 expense would result in a $60 tax saving.
Source(s):
CCRA website
You can deduct medical and dental expenses that exceed 7.5 percent of your adjusted gross income. For $31,000, you will need to have medical expenses that exceed $2,325 annually. Remember, the amount should be added to the other items on your schedule A and exceed the standard deduction for them to be beneficial.
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