Canadian tax rules and regulations offer much ease to the users. Either you are getting some medical treatment or getting a prescription for your eyewear you get relief in tax paying. As the tax filing is due near April and everyone has to file the document. Therefore it is essential to know the rules related to eyewear taxes. Either you are filing documents on your own or taking the help of a professional, you have to take advantage of a tax deduction on prescription eyewear.
You claim a tax return for contact lenses and prescription glasses. Moreover, you get a deduction in tax for the corrective eyewear. Now the question is how to claim for your prescription glasses or lenses. For this, you have to provide the purchase receipt as well as a copy of the prescription.
How Useful Is It To Claim Eyewear?
To get a checkup to buy the new eyewear is sometimes crucial because of extra expenses. Moreover, wearing an outdated lens or feeling irritated with ill-fitting frames may harm your eyes or you may lose your sight. Therefore, it is important to get relief both in illness as well as the expenses to buy new glasses. So, the Canadian government has provided the facility to the consumers and allows them to claim for the prescription eyewear in form of a tax-deductible medical expense. In this way, it cut down the overall cost of lenses and frames.
You can claim for the tax for the lenses or prescription eyewear that is one year old. Just get the receipt and attach the copy to the tax document file. There are two methods to claim the eyewear tax. The methods are given below
Medical expenses tax credit
The tax credit is limited for the eyewear only. You cannot apply for another type of prescription. You can claim for the tax return via METC. It is basically the non-refundable tax credit that is it cannot bring the taxes to above 0. It is calculated by taking a lesser of 3% of $2352 or your net income.
To calculate the tax you have to take a lesser of 2 numbers. Then subtract from eligible expenses. Now use the resulting number and multiply it lowest marginal tax rate. In this way, you will get the medical expense tax credit amount. The easy formula to calculate the tax include
Net income=A
Eligible medical expense=B
The lowest provincial marginal tax rate in percentage=C
Formula
A*0.03=A*
Compare A* with $2352
Take a lower number and call it A^
B-A^=X
X*(C+0.15)=METC
0.15 is the 15% that is the lowest marginal tax rate calculated at the federal level.
In case if your number appears zero then it means you are not eligible for the tax credit on medical expenses.
Health Spending Account
It is the type of tax return according to it you will turn your tax personal medical expenses before the deduction of the business tax. You can pay via business by using the HAS method. Therefore, you do not expense the personal cost in your business. This offers an advantage and you don’t have to pay extra for your prescription eyewear.
How HSD works?
In Canada, the tax is according to the income of the owner. If you have more income, more tax you will have to pay. Therefore, your marginal tax rate will be affected by the total cost of medical expenses. The marginal tax rate will be a combination of the federal and provincial tax rates.
Now you can follow any of these methods to get your tax return. Moreover, try to buy prescription wear from the dealer who provides you the best rates. You can avail yourself of the opportunity of buying from glasses online Canada websites or stores where you get premium glasses at affordable rates. Moreover, ask for the receipt so you can easily attach to the tax file the proof of your purchase.
Claiming for eyeglass in your business duties
Law also allows you to claim for the tax for eyewear that you wear on the business premises. For this, you have to provide proof that you wear the prescription glasses son your work environment. Moreover, you have to add the receipt as well as prescription detail to get relief in your tax. It is important that your prescription must have complete detail about eyewear use. It is good to take advice from a professional and show it to the legal advisor to claim your prescription and get benefits from it.
Try to claim for the eyewear prescription whose rules are dictated in the law. In order to save your time, try to seek help from the tax filing company so you get proper guidance and able to get a deduction in your medical prescription bills.
