SURREY (NEWS 1130) – The countdown is on. There is exactly one month to go until the income tax deadline.
We are taking a look at some of the things you might not know you can claim or how it works.
Lisa Gittens is a Senior Tax Expert with H & R Block and says you can’t claim medical expenses for over the counter medications, but you can claim it if it’s prescribed by your doctor.
“Let’s say you have inflammatory bowel disease and you know this but you haven’t gone to the doctor, so you walk into the pharmacy and you purchase an over the counter medication. You can’t deduct that on your medical expenses.”
However, Gittens adds, “You go to the doctor who diagnoses and prescribes a medication. Because you have a prescription, now you have a medical expense and a tax deduction.”
When it comes to work deductions, one of the stranger questions Gittens has received is about drugs. “If I am selling drugs on the side, do I report that as income?”
Gittens says yes, even though it is completely illegal. “You report it as casual labour income or self-employment, depending on the expenses you have to declare.”
She adds all income is taxable in Canada and if you report it correctly, you should get a refund.
You can also claim moving expenses. “Moving expenses is within Canada. You’ve moved, you’ve changed provinces, or you’ve changed cities and your purpose for moving was to start a new job or your employer transferred you or you’re moving to start school.”
Gittens says as long as your move is 40 kilometers closer to your school or work, you can claim the driving, the U-Haul it took to get there or the cost of hiring a moving truck.
“In the course of the move, you can also claim any meals that you consumed over the travelling time.”
The tax deadline in Canada is Apr. 30 for most people.
Tax returns for self-employed individuals and their spouses must be filed by Jun. 15 of the following year.
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