Richard and Pauline have two children, Jen and Rob. They have reviewed their medical expenses and decided that the 12-month period ending in 2023 they will use to calculate their claim is July 1, 2022, to June 30, 2023. They had the following expenses:
- Richard – $1,500
- Pauline – $1,000
- Jen (their 16-year-old daughter) – $1,800
- Rob (their 19-year-old son) – $1,000
Total medical expenses = $5,300
Since Jen is under 18, Richard and Pauline can combine her medical expenses with theirs, for a total of $4,300. Either Richard or Pauline can claim this amount on line 33099 of their tax return (Step 5 – Federal tax). Since Rob is over 18, his medical expenses should be claimed on line 33199.
Pauline’s net income (on line 23600 of her return) is $32,000. She calculates 3% of that amount, which is $960. Because the result is less than $2,635, she subtracts $960 from $4,300. The difference is $3,340, which is the amount she could claim on her tax return.
Richard’s net income is $48,000. He calculates 3% of that amount, which is $1,440. Because the result is less than $2,635, he subtracts $1,440 from $4,300. The difference is $2,860, which is the amount he could claim on his tax return.
In this case, it is better for Pauline to claim all the expenses for Richard, herself, and their daughter Jen on line 33099.
To decide who should claim the medical expenses for Rob on line 33199, Richard and Pauline will have to make the same calculation using Rob’s net income.
