Can you claim orthodontics on taxes in Canada?

✅ Yes, you can claim orthodontic treatments like braces and Invisalign on your taxes in Canada through the Medical Expense Tax Credit (METC).

💡 Eligible Expenses

• Metal or ceramic braces
• Invisalign and clear aligners
• Retainers and expanders
• Consultations, x-rays, and adjustments

📊 Claim Rules & Thresholds

• Out-of-pocket only: Claim only the amount you paid yourself, minus any insurance reimbursements.
• 12-month window: Choose any 12-month period ending in the current tax year.
• Income threshold: You can only claim the amount that exceeds 3% of your net income or a set federal ceiling (whichever is less).
• Filing lines: Use Line 33099 for yourself, spouse, and minor children, or Line 33199 for other eligible dependents.

🗒 Documentation Requirements

• Keep itemized receipts showing patient name, date, provider details, and description of service.
• Save records for six years after filing.

Yes, you can claim orthodontic care like braces or Invisalign on your taxes, but only if your total out-of-pocket medical expenses exceed 7.5% of your adjusted gross income (AGI) and you itemize your deductions.

Key Rules for Claiming Orthodontics

• Medical Necessity: The treatment must fix a functional issue like a bad bite, jaw misalignment, or severe crowding, rather than being purely cosmetic.
• Itemize Deductions: You must file Schedule A (Form 1040) instead of taking the standard deduction.
• The 7.5% Threshold: You can only deduct the portion of your total unreimbursed medical and dental expenses that goes above 7.5% of your AGI.
• Timing: You claim the expenses in the specific tax year you actually paid for them, not when the treatment ends.
• Subtract Insurance: You can only count the unreimbursed out-of-pocket costs that insurance did not pay back.

What Qualifies

• Traditional metal braces, clear aligners (Invisalign), and prescribed retainers.
• Consultations, X-rays, adjustments, and follow-up visits.
• Mileage for driving to and from orthodontic appointments.

The $7,500 tax credit in Canada is the Multigenerational Home Renovation Tax Credit (MHRTC). It is a refundable federal tax credit designed to help families build a secondary self-contained suite inside their home.

How the Credit Works

• The Amount: You can claim 15% of your eligible renovation and construction costs.
• The Maximum: The expense cap is $50,000 per qualifying renovation, which gives a maximum tax credit of $7,500.
• Refundable: Because it is refundable, you receive the full cash amount even if you do not owe income tax.
• Limit: It is limited to a lifetime one-time claim per individual.

Who Qualifies

• The Occupant: The new secondary unit must be home to a senior (aged 65 or older) or an adult (aged 18 or older) who is eligible for the Disability Tax Credit.
• The Relationship: The occupant must be a qualifying relative of the homeowner, such as a parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew.
• The Unit Requirements: The renovation must create a self-contained secondary dwelling unit with a private entrance, a kitchen, a bathroom, and a sleeping area.

How to Apply

• Keep all detailed invoices, receipts, and proof of payment from contractors.
• File Schedule 12 with your T1 Income Tax and Benefit Return for the tax year in which the renovation project is completed.

State sales tax deductions—where taxpayers choose to deduct actual local and state sales taxes instead of state income taxes—are widely cited by financial experts as one of the most commonly overlooked tax breaks.

Other Commonly Overlooked Tax Breaks

• Out-of-Pocket Charitable Contributions: Taxpayers often forget to write off volunteer driving mileage, costs for charity-related events, or the fair market value of donated clothing and household goods.
• The Saver’s Credit: Low- to moderate-income workers who contribute to a retirement account like an IRA or 401(k) may qualify for this extra tax credit, but many fail to claim it.
• State Income Tax Paid in Spring: If you owed and paid an additional state income tax balance when filing your return last spring, that amount can often be deducted on your current year's itemized return.
• Educator Expenses: Eligible K-12 teachers can deduct out-of-pocket classroom supply costs above the line, even if they do not itemize deductions.

You can claim eligible medical expenses through the Medical Expense Tax Credit on line 33099 or line 33199 of your Canada Revenue Agency (CRA) Tax Return.

Eligible Expenses and Rules

• Timeframe: You can choose any 12-month period ending in the tax year you are filing, as long as those expenses were not claimed on a previous year's return.
• Reimbursements: You can only claim the portion of expenses that was not reimbursed by a private or employer health insurance plan.
• Who you can claim for: Use line 33099 for yourself, your spouse or common-law partner, and your children under 18. Use line 33199 for other eligible dependents over 18 or extended family members.

How to Calculate the Claim

1. Add up all your eligible out-of-pocket medical costs.
2. Find the threshold: Calculate 3% of your net income (line 23600) or use the federal limit (around $2,834 to $2,890 depending on the tax year)—whichever amount is less.
3. Subtract that lower threshold amount from your total medical expenses.
4. The remaining balance is the amount you can claim for a non-refundable tax credit.
5. Tax tip: If filing as a couple, it is usually beneficial for the lower-income spouse to claim the total combined medical expenses to lower the 3% net income threshold.

Documentation

• Keep receipts: Do not mail your receipts if you file online, but keep all original receipts and supporting prescriptions for at least six years in case the CRA requests them later.
• Using software: Certified tax software like TurboTax will automatically calculate and optimize who should claim the expenses.