You may claim medical expenses for any 12-month period ending in 2002. Therefore, you can claim medical expenses for, say, a period from January 2, 2001 to January 1, 2002 as long as you have not included the particular items for the selected period on a previous return. CANTAX T1Plus will calculate your allowable claim for the chosen period and will enter it in the appropriate locations on your return. Any expenses incurred outside this period may be used in the next tax year, provided they fall within the 12 month timeframe at that time.

Before entering medical expenses, you should attempt to determine if you actually do have a claim. If your net income from line 236 is greater than $56,968, then your medical expenses must be greater than $1,728 in order to obtain a credit. If your net income on line 236 of your return is $56,968 or less, multiply the net income figure by 3%. If the result is greater than your medical expenses, then you cannot make a claim.

Traveling Expenses

If medical treatment is not available locally, you may be able to claim the cost of traveling to obtain the treatment somewhere else.

On December 14, 1999, the CCRA announced that taxpayers have the option of choosing between two options for calculating travel expenses for medical expenses - detailed or simplified.

The detailed method requires that receipts must be kept and submitted upon request. The simplified method involves using various pre-established flat-rates. These flat-rates were determined after the CCRA reviewed amounts being reimbursed by both the public and private sectors for these expenses.

For 2001 and subsequent years, taxpayers have the option of choosing a detailed or simplified method to calculate travel expenses for moving and medical expenses, and for northern residents deductions. All other travel expenses have to be supported by receipts.

Details are also available through CCRA's T.I.P.S line at 1-800-267-6999

Meal Expenses

Detailed Method

The detailed method of reporting meal expenses consists of entering all qualifying expenses that can be backed by receipts. In this case, all receipts must be kept.

Simplified Method

The simplified method allows the taxpayer to claim a flat rate of $11.00 a meal, to a maximum of $33.00 per day, per person, without receipts.

Vehicle Expenses

Detailed Method

The detailed method of reporting vehicle expenses consists of entering all qualifying expenses that can be backed by receipts and records.  Vehicle expenses include operating and ownership expenses. Operating expenses are fuel, oil, tires, license fees, insurance, maintenance, and repairs. Ownership expenses are depreciation, provincial tax, and finance charges.

The taxpayer has to keep track of the number of kilometers driven in that time period, as well as the number of kilometers driven specifically for the purpose of moving or medical expenses, or for the northern residents deduction. The time period would be the tax year for moving expenses and northern residents deduction, or 12 month period chosen for medical expenses. The claim for vehicle expenses is the percentage of the total vehicle expenses that relate to the kilometers driven for moving or medical expenses, or for northern residents deductions.

For example, if the taxpayer drove 30,000 kilometers during the year, and half of that was related to their move, they can claim half of the total vehicle expenses on their return.

Simplified Method

The simplified method doesn't require the taxpayer to keep receipts. Instead, the taxpayer must keep a record of the kilometers driven during the tax year for their trips associated with northern residents deductions and moving expenses, or the 12 month period they choose for medical expenses. The number of kilometers are then multiplied by a certain cents/kilometer rate for the province or territory of origin. For the rate chart contact your local CCRA office.

For example, a taxpayer who traveled from Ottawa to Montreal would have traveled approximately 200 km. The vehicle expense claim would be 200 km multiplied by the rate of 43.5 cents (a close approximation) for Ontario, which would equal $87.00.