Line 330 of the T1 return can now only be used to claim medical expenses for the taxpayer, his/her spouse (or common-law partner) and dependant children born in 1987 or later.
Line 331 is now used to claim medical expenses for other dependants. Medical expenses from lines 330 and 331 must be paid during the same 12 month period.
To accommodate this change, we've redesigned the Medical Expense form in ProFile.
Medical expenses - line 330
On the Medical Expense form, line 330, enter ONLY the unused medical expenses from the previous and the current year. ProFile will not carry forward unused medical expenses from the current year to the following year's return.
To optimize medical expenses, answer Yes to the question Optimize medical expenses? at the top of the form. ProFile will determine which taxpayer should claim the deduction at lines 330 and 331, according to the lowest net income (as long as the taxpayer can claim all expenses).
The new Medical Expense form automatically shares information between the coupled returns. Therefore, ProFile no longer requires that you transfer medical expenses to the spouse using the right-click context-sensitive menu.
If you want to decide yourself which spouse should claim the deduction, answer No next to the question Optimize medical expenses? and answer Yes to the question Are you claiming medical expenses?. To allocate a percentage to each spouse, select Percentage and enter it in the corresponding field for the current return. The spouse's return will automatically reflect the remaining percentage.
Allowable amount of medical expenses for other dependants - line 331
Enter the names of the dependants on the Dependant information form and select the name of the other dependant from the drop-down list. The dependant's net income will automatically transfer to the Net Income field of the Medical Expense form.
If you answered No the question Optimize medical expenses? at the top of the form, you will need to answer the question Are you claiming medical expenses for this dependant? for each of the taxpayer's other dependants.
The allowable amount of medical expenses will be limited to $5,000 per other dependant.
The allowable amount of expenses for each other dependant will be calculated by the difference of the total medical expenses and 3% of the dependant's net income to a maximum of $1,813.
12 month medical optimization
When you right-click on a claim amount on the Medical expenses-line 330 or line 331 sections, you will now see the following two options:
- Optimize and sort expenses - This option will sort the medical expenses by payment dates and select the optimum 12-month period for the expenses; or
- Optimize expenses without sorting - This option will select the optimum 12-month period for the expenses without sorting the medical expenses by payment dates (maintaining the order in which you entered the expenses).
Provincial 428 forms
The provincial 428 forms (provincial worksheets) include a new section (line 5872) that pertains to the new allowable amount of medical expenses for other dependants. Federal and provincial amounts may differ, due to the different threshold amounts.