Disability and Medical Expenses

Getting Started with Disability and Medical Expenses

Living with a disability or managing medical expenses can come with significant financial challenges. Fortunately, the tax system in Canada offers several ways to help ease those costs. Whether you are supporting yourself or a family member, this guide explains how to access tax credits like the Disability Tax Credit (DTC), claim medical expenses, and correct any issues on past returns.

What Are Disability and Medical Tax Credits?

The Disability Tax Credit is a non-refundable tax credit for individuals with a severe and prolonged impairment in physical or mental function. It helps reduce the amount of income tax owed, and in some cases, unused amounts can be transferred to a supporting family member. Alongside the DTC, individuals may also claim eligible medical expenses they have paid for themselves or certain dependants.

These tax benefits are designed to help Canadians with ongoing health-related needs. They are available for a wide range of conditions and costs, as long as the proper documentation and receipts are provided.

Why These Credits and Deductions Matter

Disability and medical tax relief can significantly reduce your tax burden, but many people miss out because they do not know what qualifies or how to make a claim. Some may not realize they can claim expenses for dependants or transfer unused amounts to a spouse or caregiver. Understanding the rules helps you take full advantage of what is available and avoid common mistakes.

The benefits of understanding disability and medical expenses

• Reduce your taxes with credits like the Disability Tax Credit

• Claim eligible medical costs that were paid for yourself or a dependant

• Transfer unused amounts to a family member who is supporting you

• Include travel and moving expenses related to medical treatment

• Correct past claims if you missed eligible expenses or made an error

Make the Most of Health-Related Tax Relief

Whether you are living with a disability, supporting a loved one, or managing ongoing medical costs, the tax system offers meaningful support. With the right information, you can confidently claim the credits and deductions you are entitled to and keep better control of your finances.

Understanding Disability & Medical Expense Claims

Tax credits for disability and medical expenses can reduce what you owe, but it’s important to know who qualifies, what counts, and how to file correctly. The articles below explain each area in simple terms:

• Can you claim the Disability Tax Credit (DTC) for a dependent: Learn when you can claim the DTC on behalf of a family member and what documents you need to support the claim.

• How to transfer unused DTC amounts: Step-by-step guidance on how to transfer part or all of the DTC to a caregiver, spouse, or supporting relative.

• Claiming medical expenses: Find out how to include medical costs on your tax return and which forms you need to complete the claim.

• Which medical expenses qualify: Get a list of common eligible expenses and understand what rules the CRA uses to approve medical claims.

• How far back can you claim and are there limits: Learn the time frame for claiming past expenses and whether there’s a maximum amount you can deduct.

• When you can claim travel or moving expenses for medical reasons: See when medical-related travel or relocation costs are allowed, and what records you should keep.

• Fixing a mistake on a medical claim: Understand how to update a past return if you missed an expense or need to correct an earlier claim.

• Glossary: An A–Z guide to essential tax planning terminology for informed financial strategies.