Tax time: medical expenses to consider

Many people don’t even bother to add up and claim their medical expenses because they don’t think the effort will pay off. After all, the tax credit is the least of all the tax credits in all the provinces.

Further, the expenses must be more than three per cent of net income or $2,024 — whichever figure is lower. So for a person with a $40,000 net income, the first three per cent or $1,200 of allowable medical expenses, is excluded from the calculation.

As well, the tax department requires receipts.

Nevertheless, there may well be money to keep in your pocket. Over the years, tax rules have grown to include more than 400 separate tax credits and deductions across the country that can significantly reduce the amount of tax individuals pay. Many people miss out on the medical expenses tax break because they’re just unaware of the vast array of expenses that qualify.