Who Should Claim the Medical Expenses?
The Lower-Income Spouse/Partner:
It’s often better for the spouse or partner with the lower net income to claim the medical expenses.
This is because the medical expense deduction is reduced by 3% of the claimant’s net income, up to a maximum reduction.
A lower income means a smaller reduction, resulting in a higher deduction.
Dependents:
You can also claim eligible medical expenses for your dependent children under 18 or other dependents (e.g., parents, grandparents) if you provide financial support.
How to Allocate Family Medical Expenses
Combine Eligible Expenses: Pool all medical expenses for the family, including those for yourself, your spouse/common-law partner, and dependents.
Assess Net Income: Compare each spouse/partner’s net income to determine who would benefit most from the claim.
Enter Expenses on One Return: Only one person can claim the expenses for the entire family in a single tax year.
Example
Spouse A: Net income of $50,000
Medical expense deduction reduction: $1,500 (3% of $50,000)
Spouse B: Net income of $30,000
Medical expense deduction reduction: $900 (3% of $30,000)
If the family’s total medical expenses are $3,000, Spouse B should claim them, as the deduction reduction is smaller.
Why This Matters
Properly allocating medical expenses ensures you maximize your tax savings as a family.