Did You Know? The Refundable Medical Expense Supplement

Although many of us will never claim this refundable credit, you can be sure that some of our children will as they study or enter the working world. Canadian residents over the age of 18 who have amounts on line 215 of the tax return (disability supports deduction) or line 332 of the Schedule 1 (allowable amounts of medical expenses) may qualify. The total of employment and self-employment income for 2010 has to be $3135 or more.

The maximum available credit for 2010 is $1074, and the amount refunded is the lesser of:

• the maximum credit and
•25% of medical expenses that exceed 3% of net income, plus 25% of the disability supports deduction (if applicable).
The 5% clawback begins at $23,755 of net family income, which cannot exceed $45,255 in order to claim any part of this tax credit. Use the Federal Worksheet to complete the claim chart.

A sample calculation for a single adult with $20,000 in employment income and $1500 in medical expenses results in $225 refunded. It doesn't take many dental bills, eye glass replacements or medical trips for a person with modest income to qualify for this tax credit and give a welcome boost to a tax refund!