Travel Expense Rates For 2010 To Be Used When Claiming The Medical Expense Tax Credit

Jan. 11, 2011 - PRLog -- Canadians looking to get a tax refund this year by claiming medical expenses can now start to calculate their medical expense deduction for 2010.

The Canada Revenue Agency (CRA) has released its travel and meal allowance rates for the tax year 2010. The simplified method meal allowance rate for 2010 remains unchanged at $17 per meal, per person. The simplified method vehicle expense rate per kilometre has changed slightly from 2009 for some provinces and territories: BC, AB, NWT, NU, and PEI rates were frozen, NS and ON rates rose, while the remaining provinces had decreases. The rates range from 47.5 cents/km in Manitoba to 60.5 cents/km in the Yukon Territories.

Many Canadians don’t realize that they can claim some common medical expenses on their tax returns; deductible expenses include things like premiums paid to private health services plans, dental work, prescription drugs, crutches, wheelchairs, eyeglasses, bathroom aids, hearing aids, diapers/disposable briefs for incontinence, ambulance costs, and travel expense incurred to obtain medical services. You can claim expenses for yourself, your spouse or common-law spouse, and both of yours’ children under 19 years of age. You can also claim expenses for dependant children over 19 in certain cases. You can claim these expenses for any twelve-month period that ends in the taxation year you are filing for.

The CRA states that “If medical treatment is not available to you within 40 kilometres from your locality, you may be able to claim the cost of public transportation (for example, taxi, bus, or train) to get the treatment somewhere else. However, if public transportation is not readily available, you can claim vehicle expenses to get medical treatment. In addition, if you have to travel more than 80 kilometres from your locality for medical treatment, you may be able to claim the cost of your meals and accommodations. You can also claim travel expenses for someone to accompany you if a medical practitioner certifies in writing that you are unable to travel without assistance.”

There are two ways you can calculate your travel and meal expenses, but you must keep a log of the kilometres travelled for both methods. You can submit the full value of your receipts for meals under the detailed method, up to three meals per day, per person. Under the simplified method, you can claim a flat rate of $17 per meal to a maximum of $51, per person, per day. For travel expenses under the detailed method, you must keep all receipts relating to vehicle costs including gas, oil, repairs, insurance, and ownership costs that relate to the tax year or 12-month period in question. You must log your total distance travelled for the 12-month period, as well as the distance travelled for medical purposes.  Your claim for travel expenses is the percentage of your total vehicle expenses that relate to the kilometres driven for medical reasons. If you choose the simplified method, you would multiply your kilometres driven for medical reasons by the rate applicable to your province or territory, set by CRA.

There are more deductions available to low-income families, and people who qualify for the disability tax credit, as well as their caretakers. Visit the CRA website for more information on these.

To read more about claiming medical expenses, and for direct links to the CRA website pages that detail this information, please visit the article Medical Expense and Moving Expense Claims for 2010 at http://www.howtosaveyourfinances.com

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