How to claim medical cannabis expenses on my income tax
The Canadian Revenue Agency (CRA) allows patients to claim money spent on cannabis as a medical expense during the filing of their personal income taxes. To qualify, patients must have a receipt and the cannabis must be purchased directly from a Licensed Producer, such as NorthCann Medz. Patients may also claim two Health Canada approved vaporizers.
Note: Patients who choose to grow their own medical cannabis may claim the cost of cannabis seeds obtained from a Licensed Producer but any other costs related to growing (such as lights, containers, fertilizers) are ineligible.
The CRA expects individuals not on disability or social assistance to pay for medical cannabis up to 3% of their net income, or up to a maximum payable amount of $2237.00, whichever is less. The CRA then covers a percentage of the remainder of the expense.
The following outlines the Procedure for Claiming a Tax Rebate for Medical Cannabis:
Step 1: On line 330 of Schedule 1, Federal Tax, enter the total amount that the patient paid by an individual or their spouse or common-law partner paid in the last year for eligible medical expenses
Step 2: On the line below line 330, enter whichever is less: 3% of net income (line 236) or $2,237.00
Step 3: Subtract the amount of step 2 from the amount on line 330 and enter the result on the following line of Schedule 1.
Step 4: Claim the corresponding provincial or territorial non-refundable tax credit on line 5868 of your provincial or territorial Form 428. It is useful to compare the amount a patient claims with the amount their spouse or common-law partner would be able to claim. It may be better for the spouse or common-law partner with the lower net income (line 236) to claim the eligible medical expenses.