Medical cannabis is purchased directly from legitimate manufacturers, but it’s expensive, sometimes hundreds of dollars per month. Medical cannabis has no drug identification number (DIN), which is a mark of approval required provided by Health Canada. As a result, it is not generally protected by the insurance plans of third parties. However, some insurance companies cover some of the costs. In 2018, Sun Life, a powerful insurance company, began to offer an optional coverage for medical cannabis. Another insurance company called Manulife has put in place an optional coverage in collaboration with Shoppers Drug Market to individuals and groups involved. Although many employers offer some sort of coverage through their group benefits plans, the only financial assistance for consumers is provided by the inland revenue. The Canada revenue Agency (CRA) allows the cannabis bought on order to be considered a “medical expense” is excluded from your federal income tax. The following details the process.
Any person who has a prescription from a health care professional authorized to purchase cannabis for medical purposes from a licensed producer may claim. The act requires the producers to give to consumers of receipts that they will need to show in the statement of income. So keep your written copies, or make sure you know how to access it online. In the case of a review or audit, the CRA suggests you keep your receipts for at least six years.
You can claim the amount that you pay for cannabis oil, cannabis seeds, cannabis plants and the cannabis plant, fresh or dried acquired from a producer approved. You can only claim expenses for products and not those associated with accessories such as capsules.
By checking your receipts, you can know the total amount that you have paid for to obtain medical cannabis. Add this amount to all other medical expenses allowed as you wish to claim on your income tax as well as on your benefit statement. Give your receipts to a professional whether it is filing your income tax returns. You will need to include your medical expenses in the section of the credits and deductions if you proceed with the fiscal software to complete your income tax return. The medical costs are usually calculated per 12-month period ending in the current taxation year. The expenses can only be claimed only once during this period.
The total amount of your medical expenses legitimate least 3% of your net income, or approximately 2 302 $, is deducted. The criteria can be considerably high, depending on your income and the amount of medical expenses claimed. The laws and tax policies vary from province to province and territory to another. However, you are not required to submit a single return through the CRA. With the exception of Quebec, each province and territory allows the federal government to collect taxes on the income and manage the statements. For residents of Quebec, income tax returns, provincial and federal, must be filed with Revenue Quebec and CRA, respectively.