A little while ago I was having a chat when I learned that if you have celiac disease (or a gluten intolerance), you could claim cash back from the government. I don’t have celiac disease, but have family members that do. And thinking about it, I wondered whether there were other medical conditions that you could claim money back from the Canada Revenue Agency (CRA). Conditions that aren’t stated outright when you file tax returns.
It turns out, yes, you absolutely can. Yet, it’s not widely acknowledged or known about in most cases. So today, let’s pull the wool down from our eyes and take a look at this major CRA benefit we’re missing out on.
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How it works
According to the Canadian government’s website, Canadians can merely go through the list of medical conditions and see if they are eligible. Eligible medical expenses are then filed on your tax return for you, a spouse, or common-law partner.
The medical expense must be incurred during the 12-month period ending in the last year. Further, the claimant cannot claim identical expenses in 2021. You’ll also claim all benefits paid, even if they were not paid in Canada.
However, another note to point out is you can only claim items that have not been reimbursed for. For example, if your insurance covers these expenses, you can’t claim them from the government. Even so, you could still be able to claim the remainder if your insurance didn’t cover all of it.
Types of conditions
There is a laundry list of items that Canadians can and should go through to see if they’re eligible for any of the expenses. These can include everything from a baby breathing monitor and air conditioner, to kidney machines for dialysis and even medical marijuana.
Canadians will then be able to fill out Line 33099 for themselves (33199 for dependants), putting a grand total of all the expenses they paid for in the year. You’ll then put in the lesser of either 3% of your net income, or $2,479. You’ll then subtract this number from your total expenses, entering that on your tax return.
However! Make sure to compare your amount to that of your spouse or common-law partners. These could differ, and mean that you could in fact be getting more than them should you claim the eligible expense. So get as much as you can!
Wait and don’t spend!
Now granted, if you’re making a large purchase and will need the cash back, then by all means pay that off. Don’t go into debt over a medical expense that should be covered. But if you’ve already paid the expense and are seeing this as extra cash, then perhaps take the other option of investing.
In fact, there are some great opportunities right now for those looking to get in and create more cash through passive income. Both from returns and from dividends. For instance, Canadian Utilities (TSX:CU) is arguably quite a safe investment that provides a higher-than-average yield of 5.87% as of writing. This could mean you’re making money from your medical expenses, rather than losing it entirely.
So consider these options when looking for ways to make back losses in this economic environment. And no matter what, take care of yourself and let the government pay for it.
