Are There Any Injections that are Tax-Deductible?
Are Botox injections tax-deductible in Canada?
With tax season upon us, you may have clients asking if their injections, as well as other cosmetic treatments, are tax-deductible. The short answer to this is no, but depending on what the Botox treatment is for, there may be some deductions that your client is eligible for.
An example of this is: claiming the cost of the administration of the Botox injections, with regards to the treatment of Migraine Headaches. In essence there are two costs involved with this particular type of Botox treatment: The medication, and the administration of it by a health care professional. Take into consideration that the underlying symptom is Migraine Headaches, so a neurologist would be the person administering the injection, in all likelihood. Seeing as the treatment is for a medical condition and not cosmetic purposes then yes, you can claim it on your taxes here in Canada. With this particular case you can also claim the cost of the neurologist services, if you paid out of pocket (does not apply in the province of Ontario). So you can claim both the Botox and the doctor’s fee.
There are a few lesser-known medical expenses that can also be claimed:
- If you had to travel more than 40 km (one-way) to seek medical treatment, your travel costs may qualify as a medical expense. For trips, more than 80 km (one-way), other related expenses such as meals and accommodations can be added.
- Private medical insurance premiums are tax-deductible. If your premiums are deducted from your pay cheque, check your T4 (box 85) to ensure the amounts are listed. If you pay the premiums directly, total your receipts for the year.
Depending on your income level, your medical expenses may not have an effect on your bottom line at tax time. The Canada Revenue Agency has a 3% rule that excludes a certain amount of your expenses, dependent on your yearly income level.
Your total medical expense must exceed either of the following:
- Three percent of your net income
- The set figure provided by CRA (this number is not static and changes every year, but it is usually around $2000)
An example would be: If your net income was $30,000, then the first $900 worth of medical expenses don’t count in the calculation of the credit. You would only receive a tax break for any amount over $900.
Just remember to remind clients that procedures such as Botox for cosmetic purposes are considered ineligible medical expenses, but Botox for legitimate medical needs are deductible.