Medical Expenses Tax Credit in Canada and Quebec

Medical Expense Tax Credit

Medical expenses can represent a significant financial burden. To help reduce these costs, both the federal government and Quebec provide a Medical Expense Tax Credit (METC) for eligible medical expenses.

Although both tax systems offer relief, the rules, calculation methods, and claim procedures are different.

A wide range of out-of-pocket medical costs may qualify, including:

• Prescription drugs.
• Dental services.
• Eyeglasses.
• Hearing aids.
• Travel expenses for medical care.
• Certain private health insurance premiums.

Federal Medical Expense Tax Credit Rules

Under the federal tax system, you may claim eligible medical expenses paid for:

• Yourself.
• Your spouse or common-law partner.
• Your dependent children under 18 years of age.

A separate calculation applies for other eligible dependants, such as adult children or parents.

Only the portion of eligible medical expenses that exceeds the lesser of 3% of your net income or the annual federal threshold qualifies for the Medical Expense Tax Credit.

In most cases, couples receive the greatest tax benefit by claiming all family medical expenses on the tax return of the spouse with the lower net income.

Eligible expenses can be claimed for any continuous 12-month period ending in the tax year.

Medical expenses are reported on:

• Line 33099 – Medical expenses for yourself, your spouse or common-law partner, and dependent children.
• Line 33199 – Medical expenses for other eligible dependants.

Quebec Medical Expense Tax Credit Rules

Quebec also provides a Medical Expense Tax Credit; however, the calculation method differs from the federal system.

Unlike the federal rules, Quebec uses one calculation covering the taxpayer and all eligible dependants. The credit is claimed on Line 381 of the TP-1 Income Tax Return.

To qualify, total eligible medical expenses must exceed 3% of family income.

Because Quebec bases the calculation on combined family income, there is generally no tax advantage to having the lower-income spouse claim the expenses.

Eligible private health insurance premiums may also be included, including employer-paid premiums reported in Box J of the RL-1 slip.

Medical expenses claimed by one spouse cannot be claimed again by the other spouse.

The Quebec Medical Expense Tax Credit is non-refundable, meaning it can reduce taxes payable but cannot generate a refund on its own.

Federal and Quebec Medical Expense Tax Credit Comparison

Description	Federal (T1 Return)	Quebec (TP-1 Return)
Calculation Method	Separate calculations apply depending on whether expenses are for yourself, spouse, children, or other dependants.	One calculation applies for the taxpayer and all eligible dependants.
Income Threshold	Eligible expenses must exceed the lesser of 3% of net income or the annual federal threshold.	Eligible expenses must exceed 3% of family income.
Claim Line	Line 33099 and Line 33199.	Line 381.
Health Insurance Premiums	Eligible private health insurance premiums may qualify.	Employer-paid eligible premiums reported in Box J of the RL-1 may qualify.
Refundable or Non-Refundable	Non-refundable tax credit.	Non-refundable tax credit.

Medical Services Not Available in Your Area (Quebec)

Quebec provides an additional tax credit for taxpayers who must travel to receive medical services that are not available in their local area.

These expenses are claimed separately from the general Medical Expense Tax Credit.

The credit is reported on Line 378 of the Quebec TP-1 Income Tax Return.

To claim this credit, taxpayers must complete Form TP-752.0.13.1-V – Expenses for Medical Services Not Available in Your Area and keep all supporting receipts.

Eligible Expenses

Depending on the distance travelled and the circumstances, eligible expenses may include:

• Transportation costs.
• Accommodation expenses.
• Meals, where applicable.
• Certain moving expenses.

Travel and Accommodation Requirements

Travel and accommodation expenses may qualify when:

• The required medical service is not available within 200 kilometres (one way) of your residence.
• The expenses were paid during the tax year.

Moving Expenses for Medical Services

Moving expenses may qualify if you relocate to live within 80 kilometres of a health care facility that is located at least 200 kilometres from your former residence.

These expenses may be claimed for:

• Yourself.
• Your spouse.
• An eligible dependant.

Expenses That Cannot Be Claimed

Expenses cannot be claimed if:

• You were reimbursed and the reimbursement was not included in your income.
• The expenses relate to cosmetic procedures.
• IVF expenses are already being claimed under Quebec's infertility treatment tax credit.

Choosing the Best Tax Treatment

Line 378 should only be used when it provides a greater tax benefit than claiming the same expenses elsewhere.

Taxpayers should compare the benefit with other possible claims, such as:

• Line 228 – Moving Expenses.
• Line 236 – Travel for Remote Areas.

Federal Treatment of Medical Travel Expenses

Similar travel expenses may also qualify as medical expenses on the federal income tax return.

Transportation expenses may be claimed when you travel 40 kilometres or more (one way) to obtain medical services that are unavailable closer to your home.

If the travel distance exceeds 80 kilometres (one way), you may also claim reasonable expenses for:

• Meals.
• Accommodation.

An attendant's travel expenses may also qualify if a medical practitioner certifies that you were unable to travel alone.

Federal vs. Quebec Medical Travel Expense Comparison

Expense	Federal (T1 Return)	Quebec (TP-1 Return)
Travel (40 km or more)	Transportation expenses may be claimed when medical services are unavailable within 40 km of your residence.	Transportation expenses qualify when services are unavailable locally and travel requirements are met.
Travel (80 km or more)	Meals and accommodation may also be claimed.	Travel, accommodation, and accompanying person's expenses may qualify.
Accompanying Person	Allowed with medical certification.	Allowed with written medical certification.
Services Not Available Locally	Claimed as regular medical expenses.	Additional credit available on Line 378 with Form TP-752.0.13.1-V.
Moving Expenses	Up to $2,000 may qualify as a medical expense when moving to a more accessible residence.	Similar rules apply, but expenses cannot be claimed elsewhere.
Meals (Simplified Method)	$23 per meal, up to $69 per day.	Receipts are required; no provincial flat-rate method is available.

Example – Medical Services Not Available in Your Area

Situation

Julie lives in Rimouski, Quebec, and requires a specialized medical procedure that is only available in Montreal.

Because the procedure is unavailable locally, she travels more than 500 kilometres to receive treatment and remains in Montreal for one week for follow-up care.

None of her travel costs are reimbursed.

Expenses

• Round-trip train fare: $300
• Hotel: $150 × 7 nights = $1,050
• Meals: $350
• Local transportation: $80

Total Eligible Expenses: $1,780

Tax Treatment

Julie completes Form TP-752.0.13.1-V to calculate her eligible travel, lodging, meal, and transportation expenses.

The eligible amount is then reported on Line 378 of her Quebec TP-1 return.

Unlike the general medical expense credit, these expenses are not subject to the 3% family income threshold.

Federally, the same travel expenses may also qualify as medical expenses because Julie travelled more than 80 kilometres to receive treatment. However, they are combined with her other medical expenses and remain subject to the federal medical expense threshold.

For many Quebec taxpayers, claiming these expenses separately on Line 378 may provide a greater provincial tax benefit.

In Vitro Fertilization (IVF) Expenses

Eligible In Vitro Fertilization (IVF) expenses may be claimed on both federal and Quebec tax returns; however, each jurisdiction applies different rules.

Federal IVF Rules

Federally, IVF costs form part of your total eligible medical expenses.

Eligible expenses may include:

• IVF treatment.
• Fertility treatments.
• Laboratory tests.
• Medical services.
• Prescription medications.

These expenses qualify only if they have not been reimbursed by a health insurance plan.

Expenses related to a surrogate mother are generally not eligible.

Any reimbursement received through a provincial fertility program must reduce the amount claimed federally.

Quebec IVF Rules

Quebec offers a specific refundable tax credit for IVF and artificial insemination expenses.

Unlike the federal system, these expenses cannot be claimed as general medical expenses on Line 381.

Instead, taxpayers must complete Form TP-1029.8.66.2-V and claim the credit on Line 462 of the TP-1 return.

To qualify:

• The taxpayer must be a Quebec resident.
• Eligible expenses must not be covered by a health insurance plan.
• A physician must certify that neither spouse has undergone surgical sterilization unless it was medically necessary.

Eligible IVF Cycle Limits

Age	Eligible Cycles
Age 36 or younger	One eligible cycle.
Age 37 or older	Up to two eligible cycles.

Eligible IVF expenses are limited to $20,000 per year.

Example – Claiming IVF Expenses

Situation

Marie and Marc are Quebec residents with a combined family net income of $115,000.

During the year, they incur $18,000 in eligible IVF expenses, including fertility clinic fees, prescription medications, and laboratory testing.

They receive no reimbursements and have no other significant medical expenses.

Federal Tax Treatment

Because Marie has the lower income of $55,000, she claims the entire medical expense amount.

Her claim threshold is the lesser of:

• 3% of her net income: $1,650
• The annual federal threshold.

The lower amount is $1,650.

Eligible medical expenses:

$18,000 − $1,650 = $16,350

Marie reports $16,350 on Line 33099 of her federal T1 return.

The federal Medical Expense Tax Credit equals 15% of the eligible amount, resulting in a federal credit of:

$16,350 × 15% = $2,452.50