Employee Medical Expenses that are Claimable on Their Income Tax Returns

A lot of employees don’t realize that there are many medical expenses that are claimable on their income tax returns. This is often overlooked and is an excellent money-saving tool that should be part of the overall employee education about benefits and medical expenses. Of course the expenses covered under your existing group benefit plan do not apply, but expenses that fall outside of the plan could be eligible.

Some of the major claimable expenses that your employees should be aware of include the deductibles for your existing benefits plan, and the extra 20% if your plan only covers 80%. These types of tax savings can be used to sell the benefits of a shared cost employee health plan (where employees and employers both contribute). Not only are you eligible to claim your contributions against your income as an employer, so can the employee!

Here are just a few other employee medical expenses that are claimable on their income tax returns (provided they are not covered under your existing group benefits plan):

  • Assisted breathing devices (sleep apnea machines, oxygen tanks, etc.)
  • Limb braces
  • Cochlear implants
  • Crutches
  • Some dental services
  • Laser eye surgery
  • Needles/syringes

For a more complete list of eligible expenses and more detail on how much you can claim, please click here for a helpful page on Revenue Canada’s website.

Another claimable expense that is become more and more common is medical marijuana. If you are interested in learning more about the legalization of recreational marijuana and how it can affect your business, we encourage you to read our article about Preparing Your Business for the Legalization of Marijuana.

***Please note this article is not to be considered tax advice as each individual case will be different. Please contact an accountant for personal tax advice***

At DENT we believe in empowering employees to take charge of their financial well-being through proper education and access to information such as this article. It all starts with you as the employer and if you would like to take a vested interest in your employees in order to attract and retain top talent, we encourage you to contact DENT Benefits today.

The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.

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