Claiming Medical Expenses: Free Healthcare?

Free Health Care? Did you know that Canadians spend on average more than $1,000 on medical expenses each year? It’s estimated that government programs, via our taxes, cover about 72% of medical expenses, which means that we pay for the rest. Your clients may be over-paying on their taxes because they don’t know about medical expense deductions. 

For taxpayers who filed a 2021 tax return in Alberta, Saskatchewan, Manitoba or Ontario a second Climate Action Incentive Payment (CAIP) will be in your bank account on October 14.  Those who did not file a tax return yet, should get on it, as the CRA is not paying interest if you are claiming these rebates late. 

Old Age Security (and the Guaranteed Income Supplement) are updated quarterly according to changes in the Consumer Price index. With inflation running at close to 7%, OAS, which was indexed by 2.8% in July, is expected to increase another 2.8% in October. 

In 2019, the Alberta government paused the indexation of personal amounts and tax brackets. The effect of no indexation is an annual increase in taxes because wages tend to increase with inflation causing higher taxes to be levied on individuals.  Here’s a look at the new brackets and rates:

Prepare to defend your clients against tax risk emanating from increasing CRA audit activity. Then, take a detailed look at the long and convoluted road to tax change that has resulted substantive change in how your clients report income, deductions, credits and exercise their appeal rights.  Knowledge Bureau’s new Audit Defence Course is now available online and features interesting perspectives from some of Canada’s leading tax experts.  In focus:  independent business owners, which could include you.

This year, the year end tax planning opportunities to build and preserve wealth are most important for investors and business owners swooning under the speed of change.  Join Evelyn Jacks, Alan Rowell and Dr. Dean Smith for a vibrant and comprehensive year end tax planning update at the Virtual CE Summit, November 16.  Here’s what’s on the agenda; register by October 14 for early bird savings. Tuition is tax deductible and qualifies for CE Credits.

‘Must-Attend’ annual event to welcome you back to DAC Acuity 2022. Open to all registrants, speakers and sponsors. Carol Willes is the Director of Estate Planning at BMO Private Wealth. Willes knows what it takes to assist client’s in navigating their present financial situation and develop their future legacy, while simultaneously embracing your highest standards of professionalism.