fellow canadians - braces and the tax man

Message

#1 Post by **PIMPmyTEETH** » Wed Nov 15, 2006 6:37 pm

is it true that orthodontic expenses are eligible as medical expenses? if your total medical expenses are over a certain amount (i think its $1,844), you get you a non-refundable tax credit.

i know dental expenses are...but are dental expenses the same as orthodontic expenses, according to the governement?

this would be great news because i believe if your expenses are about $5000, your credit would be around $800. this would come off of your tax payable. and, if 3% of your total net income is less than 1,844, you'd get even more.

#2 Post by **Kodius Champion** » Wed Nov 15, 2006 9:45 pm

My ortho's office has said, "You can claim this on your income tax, you know, as well as your gas and expenses to get here." (I live nearly an hour away).

I don't know the actual details (though I'll definately be getting the low-down from them come tax time!), but they're the largest practice in the area, so I figure they know what they're talking about.

Anyone else out there have some actual facts? Any help is greatly appreciated!

#3 Post by **broochie** » Thu Nov 16, 2006 4:52 am

I think you get a tax credit for medical expenses (there is a 1500$ deductible though), provided they are not "cosmetic" but due to a medical condition. I am not sure of this and may be wrong. There might also be differences between provinces, apart from the federal taxes rules. I am going to ask my ortho at my next appointment and will keep you posted.

#4 Post by **PIMPmyTEETH** » Thu Nov 16, 2006 5:56 am

that deductible you're speaking of is $1844 or 3% of your net income, which ever is lower. then, that number subracted from your total medical expenses multiplied by the lowest federal tax rate is part of your tax credit. i believe the other part is calculated with your provincial tax rate. im not 100% sure on if that's exactly how its calculated.

surely there must be at least one canadian lurking here that has looked into this???

#5 Post by **sneakers321** » Thu Nov 16, 2006 6:21 am

I have been wondering the same thing....no I haven't actually asked, but it's something I will look into today for sure, and I will be sure to post what I've learned on here when I find out. Even if it's only a tiny percent, a tiny percent of $5000 is a big enough handful of cash.

#6 Post by **PIMPmyTEETH** » Fri Nov 17, 2006 10:15 pm

please, i hope the canadians out there in the middle of, or completed, treatment have looked into this????

it's too much money to just throw away...

#7 Post by **nico07** » Fri Nov 17, 2006 10:20 pm

Yeah, I got $750, but can't remember all the details. I've been done for about a year, now.

#8 Post by **PIMPmyTEETH** » Fri Nov 17, 2006 10:25 pm

Nice...that's what i wanted to hear!

I'll definitely get all the details when/if I begin treatment.

#9 Post by **lilsisbet** » Sun Nov 19, 2006 7:31 am

I can't remember the details (minimum amount needed, %, etc.), but I took all my dental expenses from 2004 (including my Ortho bills and general dental bills that were over and above my what my insurance company covered) and claimed these. Since I work full-time and have a part-time job, I usually end up owing Revenue Canada a chunck of $$$. Last year, claiming the dental bills brought it down considerable. I have been paying my Ortho monthly and am hoping this year I will have a similar outcome. It is pretty straight forward and well worth the effort.

Give it a shot.

#10 Post by **Yayme!** » Sun Nov 19, 2006 10:08 am

I think perhaps the reason why not a lot of people have looked into this could be that most of us who get braces have health insurance through our work our through a member of our family's work.

I think for a lot of people (including me) it would be unthinkable to spend thousands on braces without them being covered by some kind of insurance.

#11 Post by **PIMPmyTEETH** » Sun Nov 19, 2006 12:00 pm

please adopt me if your family's coverage includes full orthodontic treatment for adults!!!

i have limited coverage, but it's not bad.

#12 Post by **Kodius Champion** » Sun Nov 19, 2006 1:39 pm

I think for a lot of people (including me) it would be unthinkable to spend thousands on braces without them being covered by some kind of insurance.

Over $8000 (Canadian) to fix my teeth and jaw. No insurance coverage for anything except my non-existant kids.

If it's gotta be done, it's gotta be done.

Now, anyone find some cold, hard tax-time details?

#13 Post by **Yayme!** » Sun Nov 19, 2006 2:12 pm

You mean even the jaw surgery won't be covered? Is it because they judge it is not medically necessary?

#14 Post by **hippyhippo** » Sun Nov 19, 2006 3:38 pm

I haven't looked into this fully, so I may be completely off the mark here. But from what I understand...

You don't get a tax break on the first $1844 (or whatever number it is) of medical expenses, you're expected to pay for that fully. Anything over that is when you get your tax break. So if you paid $5000 for ortho treatment, assuming you have no other medical expenses that year, you can get a credit based on the $3156 ($5000 - 1844) amount.

But I also was under the impression that all of these expenses had to be paid within a 12 month period. So if you're on a payment plan with your ortho over multiple years, the medical expenses you can claim on your taxes for each year may be much lower.

This is one of the reasons why I did many of my big medical expenses all within the same year (new contacts, new glasses, ortho), and why I opted to pay all up front instead of on a payment plan.

But again, I haven't looked into this fully, so I may be out to lunch here! I'll figure it out when I do my taxes

#15 Post by **Kodius Champion** » Sun Nov 19, 2006 5:10 pm

You mean even the jaw surgery won't be covered? Is it because they judge it is not medically necessary?

Oh, it's medically necessary. Luckily, the surgery is covered by provincial medicare. It's my own insurance that won't pay for a thing.