Many dental expenses are eligible for non-refundable tax credits.
This can help reduce the amount of income tax you owe.
Either you or your spouse can claim all or a portion of the tax credit, but it is usually best to have the lower income spouse claim the medical credit, as the 3% reduction will be less. However, if the total of these credits is more than the amount you owe, you will not get a refund for the difference.
The medical expense tax credit decreases as an individuals income increases, since the allowable expense is reduced by the government prescribed 3% of income. This
reduction is maxed out at $2,011 which essentially means that if an individual’s income is greater than $67,033, the $2,011 reduction is maxed. Any medical expenses above $2,011 are then eligible for the 21.05% medical credit.
For a sample calculation click our Medical Expenses Tax Credit Calculator to calculate your own tax savings.
ELIGIBLE FOR TAX CREDIT: Dentist, Dentures, Orthodontic work including braces, premiums paid to private health services plans (include medical, dental or hospitalization plans).
For more information on METC please visit the Canadian Revenue Agency webpage at: http://www.cra-arc.gc.ca/gncy/bdgt/2010/mdcl-eng.html, or consult your income tax office.