Claiming Medical Expenses on Your Tax Return – A Complete Guide by a Montreal CPA Firm Near You

Claiming medical expenses in Canada is one of the most valuable tax strategies

available to individuals and families, yet it is also one of the most misunderstood. The

medical expense tax credit allows Canadians to reduce the taxes they owe by claiming

eligible out-of-pocket medical and dental costs for themselves, their spouse, and

dependants. However, many taxpayers miss deductions, claim ineligible expenses, or

fail to organize receipts properly, resulting in reassessments or audits. Understanding

how claiming medical expenses in Canada works, which expenses qualify, how the

threshold is calculated, and what documentation CRA requires can significantly

increase your refund and protect you during a CRA medical review. This guide explains

the rules, the claim period, eligible expenses, common mistakes, and how to properly

claim medical expenses on your tax return.

Legal and Regulatory Framework

The medical expense tax credit is governed by section 118.2 of the Income Tax Act,

which defines which medical expenses are eligible and establishes the criteria for

claiming medical expenses in Canada. Eligible expenses must be paid for medical

services or products prescribed by a medical practitioner recognized by law. CRA’s

regulations specify the types of prescriptions, devices, therapies, and professional

services that qualify. Medical expenses must exceed the lesser of 3% of the taxpayer’s

net income or a fixed threshold amount set annually by CRA. Taxpayers may use any

12-month period ending in the tax year to maximize their claim, giving flexibility for

timing medical surgeries, dental procedures, or major health expenses. Receipts must

be retained, and CRA may require proof of payment and prescriptions during a medical

expense review. Revenu Québec applies parallel rules under the Taxation Act, with a

similar threshold and documentation requirements.

Key Court Decisions

Several court cases highlight the importance of proper documentation and adherence to

CRA rules when claiming medical expenses in Canada. In Morrell v. The Queen, a

taxpayer claimed alternative therapies without proper prescriptions; the court upheld

CRA’s denial, confirming that the Income Tax Act requires prescribed treatment from an

authorized practitioner. In Campbell v. Canada, CRA denied dental and orthodontic

expenses because receipts were incomplete, and the Tax Court ruled that taxpayers

must maintain proper invoices, even when treatment is legitimate. In Zygmont v.

Canada, a taxpayer attempted to claim travel expenses for medical treatment but failed

to prove distances and necessity; the court upheld CRA’s decision, emphasizing strict

compliance with documentation rules. These cases demonstrate that claiming medical

expenses requires precision, proper receipts, and full understanding of CRA’s legal

criteria.

Why CRA Targets This Issue

CRA frequently reviews medical expense claims because they are prone to

misunderstanding and overstatement. Medical expenses represent one of the most

commonly adjusted items during CRA reviews, especially when taxpayers include costs

that are not eligible under the Income Tax Act. CRA pays particular attention to claims

involving naturopathic care, private practitioners, assistive devices, travel for medical

appointments, and large dental or surgery expenses. Claims with partially paid invoices,

missing prescriptions, or unclear documentation are high-risk for reassessment. CRA

also reviews medical expenses when amounts fluctuate significantly year to year or

when expenses appear disproportionate to income. Because medical expenses reduce

taxable income through a federal and provincial credit, CRA ensures every claim

complies with the law. Understanding how CRA verifies medical expenses is essential

to successfully claiming medical expenses in Canada without triggering a negative

reassessment.

Mackisen Strategy

Mackisen CPA Montreal uses a structured, evidence-based approach to help clients

maximize their medical expense tax credits safely and accurately. Our process begins

by identifying all eligible expenses for the family unit, including dental surgery,

orthodontics, prescription medications, fertility treatments, mental health services,

medical devices, and travel costs for specialized care. We evaluate the 12-month period

rule to determine the optimal claim window, ensuring maximum credit. We verify

whether receipts include prescriptions, detailed invoices, provider information, and proof

of payment. When clients have partial documentation, we assist them in obtaining

missing records from medical offices or pharmacies. We issue clear guidance on which

naturopathic, therapeutic, or alternative treatments qualify under CRA rules to avoid

denied claims. For high-risk submissions, we prepare clients for potential CRA medical

reviews and compile organized, compliant documentation to respond efficiently. This

strategic approach minimizes CRA scrutiny and ensures taxpayers receive the full

benefit of claiming medical expenses in Canada.

Real Client Experience

A client came to us after CRA denied their orthodontic expenses due to missing

payment receipts. Although the treatment was legitimate, the clinic had provided only

estimates and partial records. We contacted the provider, obtained full invoices and

proof-of-payment statements, and filed a successful adjustment request restoring the

full medical expense credit. In another case, a family undergoing fertility treatments had

scattered receipts across multiple providers. We consolidated all documentation,

optimized the 12-month period, and increased their tax credit by several thousand

dollars. A senior client claimed travel expenses for medical treatment outside of

Montreal but lacked mileage records. We recreated the travel log using hospital

appointment letters, parking receipts, and mapping tools, allowing CRA to accept the

expenses. These cases illustrate how professional support can make a major difference

when claiming medical expenses in Canada.

Common Questions

Many taxpayers ask whether over-the-counter medications qualify. CRA requires that

medications be prescribed by a medical practitioner and dispensed by a pharmacist to

be eligible. Another common question is whether cosmetic procedures qualify. Cosmetic

procedures are generally excluded unless medically necessary. Canadians also ask

whether receipts must be submitted with the return. Receipts are not required during

filing but must be kept for six years in case of CRA review. Some taxpayers wonder

whether massage therapy, acupuncture, or naturopathy qualify. These services qualify

only if provided by practitioners recognized by provincial law. Others ask whether they

can claim expenses for dependant who do not live with them. The answer is yes,

provided the dependant relies on the taxpayer for support. These questions highlight the

importance of understanding the detailed criteria for claiming medical expenses.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps

Canadians stay compliant while recovering the taxes they’re entitled to. Whether you

are claiming medical expenses, responding to a CRA review, or optimizing the medical

expense tax credit for your family, our expert team ensures precision, transparency, and

protection from audit risk.