Eligible Expenses

Annual Income Tax Return

Both at the provincial and federal levels, a medical expenses tax credit may be granted if certain conditions are met.

Provincial Tax

At the provincial level, both the employer-paid and employee-paid portions of health insurance premiums can be included as eligible expenses in the employee’s tax return. Additionally, the following expenses may be added:

Expenses exceeding contract limits (e.g., eyeglasses, dental care, etc.)
Unreimbursed expenses by the insurer, such as:
- The deductible
- Unreimbursed co-insurance

The tax credit is calculated on the portion exceeding 3% of the family’s net income. Therefore, it is generally more advantageous for the spouse with the higher income to apply these expenses to their tax return.

Federal Tax

At the federal level, only the employee-paid portion of health insurance premiums can be included as eligible expenses in the tax return. The eligible amount corresponds to the amount reported at the provincial level, minus the employer contribution stated in Box “J” of the Relevé 1.

Unreimbursed expenses by the insurer can also be added to the federal tax return. These family-related expenses may be claimed by either spouse. A tax credit is granted on the portion exceeding 3% of net income, with a maximum threshold. It is generally more beneficial for the spouse with the lower income to claim these expenses, provided they have enough taxable income to take advantage of the credit.