Tax season is upon us and every year we ask ourselves…Is this tax deductible? Especially when it comes to medical expenses, the list of expenses you can claim on your tax return feels endless! NexGen Hearing is here to help you understand whether or not hearing aids are tax-deductible in Canada.
The short and sweet answer is yes! Hearing aids are most certainly a medical expense that is tax-deductible in Canada. However, there are some things to consider and take note of before filing your taxes to ensure you are fully benefiting from any deductions that you claim. In this article, we will cover topics such as: what is eligible for deductions, claiming hearing aids on your upcoming taxes, and how NexGen Hearing can help with more affordable access to hearing aids.
Which Hearing Aid Expenses Are Eligible?
First and foremost, it’s important to understand what hearing aid related items are eligible for tax deductions in Canada. The following are hearing-related costs that can be claimed on your upcoming taxes:
- The cost associated with Hearing aids (or personal assistive listening devices) – Depending on where you purchased your device, you might have paid in full or have a financing plan. Also make note of how much of this purchase was covered by insurance, if applicable.
- The costs associated with repairs made to hearing aids (or personal assistive listening devices) – If you have had to pay for any repairs to the device, keep a record of how much you paid and how much is covered by insurance or the company you bought it from (if your insurance covers this or if there is a warranty).
- The cost of batteries for your hearing-related devices – Every time you buy replacement batteries for your hearing aids, make sure you get a receipt so that you claim these costs on your taxes!
- The costs associated with medical services by medical practitioners – The health care professionals recognized by the Canada Revenue Agency (CRA) as medical practitioners for medical expense tax credit vary from province to province, however British Columbia recognizes hearing aid practitioners as authorized medical practitioners.
How to Claim Hearing Aids on your Upcoming Taxes
Now that we have an understanding of what can be claimed as a tax-deductible expense, let’s talk about how to go about claiming hearing aids on your upcoming taxes. Eligible medical expenses on your tax return must be anything you, your spouse or common-law partner paid for during the calendar year (i.e., Anything bought or paid for in 2020). Also, it is important to keep in mind that you can only claim the expense amount that is not going to be reimbursed by insurance or covered by a warranty.
Some medical expenses require certain documentation, such as prescriptions, certification in writing, or Form T2201. However, hearing aids do not require these to be filed along with your taxes.
When you are filing for your tax return, you can claim your hearing-related expenses on the following lines:
Line 33099
Medical expenses for self, spouse or common-law partner, and your dependant children born in 2003 or later. For example, you would use this line if you purchased hearing aids for your spouse at some point in 2020. You would claim the amount in this section to get the proper tax-deductible related to hearing aids.
Line 33199
Allowable amount of medical expenses for other dependants. For example, you would use this line if you purchased hearing aids for an elderly family member in your care who is also a resident of Canada. You would claim the amount in this section to receive the tax-deductible related to the purchase of the hearing aids.
To calculate your tax-deductible for medical expenses in Canada, you subtract 3% of your net income or $2,397 (whichever is the lesser of the two amounts) from your total eligible medical expenses for that year. This final number is the amount you are eligible to claim on your tax return!
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How NexGen Hearing Can Help
Even though hearing aids are tax-deductible in Canada, it is no question that the cost of hearing aids is a huge reason for people not wanting to purchase them. Knowing that you will be getting a return in the next year, is not always a huge benefit to people who are considering investing in hearing aids. It’s important to us at NexGen Hearing that we find ways to help everyone find affordable access to healthy hearing solutions. Some hearing devices are not fully covered by certain insurance policies, so it’s important to look into available financing options as well.
At NexGen Hearing, we are one of the first hearing aid retailers to offer a lease-to-own program and we offer various financing options to ensure we are helping to create access to affordable hearing-related devices! contact us today for more information.