Many of us have extended health coverage for health providers like Massage Therapist, Physiotherapist, Chiropractor or Naturopathic Doctor. In many cases, our health plans cover most of these expenses annually up to a certain maximum. Did you know anything you pay out of pocket and not covered by your health plan may be tax deductible (including the Paramedical professionals that we have at gesund)? If you have no health coverage and are paying to see a Chiropractor or a Massage Therapist out of pocket for example; you could potentially have a significant tax credit that can lower your taxes (or that of your partner’s).
“Did you know anything you pay out of pocket and not covered by your health plan may be tax deductible (including the Paramedical professionals that we have at gesund)?”
What is considered an eligible medical expense according to the Canada Revenue Agency is quite extensive. They have a complete listing on what is covered here. Needless to say at gesund, all our of therapists fees would be covered under a claimable medical expense (Naturopathic Doctors, Chiropractors, Physio and Massage Therapy).
If you are self-employed and pay premiums on a health plan that’s deductible under CRA rules as are expenses for a spouse or a dependant like a child (should you be the one paying for them). In addition, if you make more income than your spouse you may be able to transfer your tax credits to the lower income spouse to reduce your overall tax burden. This has the potential to save people and couples thousands of dollars in tax a year.
Keep all your receipts for expenses not covered by your health plan that you are going to claim – your tax professional or the government may want to see them. If you are unsure about this tax credit and how it works please consult a tax professional.
Disclaimer:
This meant to complement but not replace tax advice from a professional tax preparer who is qualified to give advise and prepare tax returns on your behalf.
