Travel for Medical Care? Claim Your Deductions

Do you have clients who travelled to another city for medical care in 2017, but failed to keep receipts?  It pays to do a little research to maximize their claims. In fact, they don’t need to miss out on the medical expense savings, if you use the simplified method to file.  Here are the rules:

Clients that travelled for medical care not available in their community can claim vehicle, parking, and meal expenses under this simplified method provided they had to travel more than 80km (roundtrip). Meal costs can be claimed, up to $17 per meal, to a maximum of $51 per day. While itemized receipts are not required, record keeping is essential as always, as the CRA may request documentation on the distance, duration, and reason for medical travel.

Clients who travelled for medical care not available in their community can claim vehicle, parking and meal expenses under this simplified method, provided they had to travel more than 80km (roundtrip). Meal costs can be claimed, up to $17 per meal, to a maximum of $51 per day. While itemized receipts are not required, record keeping is essential as always, as the CRA may request documentation on the distance, duration and reason for medical travel.

Knowledge Bureau’s online tax research library is an excellent time saver in the busy tax season, when information like this is hard to come by.  Vehicle expenses are calculated using the rates listed below; each figure represents the number of cents you claim for each kilometer of travel. Three years of allowable amounts are shown, in case errors or omissions need correcting on prior filed returns.

Excerpted from EverGreen Explanatory Notes.

SIMPLIFIED METHOD:  TRAVEL EXPENSES FOR MEDICAL, MOVING, NORTHERN RESIDENTS DEDUCTIONS

Looking to further enhance your tax education to better help your clients make the most of the tax credits that are available to them? Knowledge Bureau’s Distinguished Financial Advisor – Tax Services Specialist designation certifies you to prepare personal and corporate tax returns at a high professional standard.

The courses are available to take online at your convenience, and will help you grow your own professional practice. Early bird registrations for spring and summer school are available until June 15. Six in-depth courses must be completed in order to earn a designation.  This is a good time to sign up and make sure you have these high-in-demand credentials in time for tax season 2019.

Knowledge Bureau alumniSarah McCurdy turned to the DFA – Tax Services Specialist program to further her knowledge as her tax career evolved, transitioning her into an entrepreneurial role as a business owner. She writes,

“Participating in the DFA designation program solidified my understanding of concepts I already knew, and gave me invaluable new knowledge of the ins and outs of tax return preparation. It has also given me confidence in advising my clients.”

Additional educational resources:
Knowledge Bureau’s Spring CE Summits is an additional resource available for tax advisors ready to take their career to the next level. With workshops visiting Winnipeg on May 29, Calgary on May 30, Vancouver on May 31, and Toronto on June 6, there are a variety of opportunities to learn essential tax tips that benefit advisors and their clients.

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