When we think of dentists and we think of taxes, we usually consider the medical expenses incurred at the dentist to claim on our personal tax returns.
However, in 2010 the Canada Revenue Agency has made some changes to the medical expense tax credit. Procedures that are purely cosmetic are now ineligible to be claimed as medical expenses.
For instance, your decision to whiten your teeth will no longer provide a tax credit but your root canal extraction will. If the expense is for medical or reconstructive purposes, then the expense will still qualify.
Another change to the dental industry is the decision by the government in the 2010 Budget to have GST/HST be charged on the cosmetic procedures. So now not only will your cosmetic treatments not get you a tax credit, you will also be paying 13% GST/HST on top of the cost.
The rationale is that cosmetic procedures are not basic health care and therefore are subject to tax. For details on which specific procedures qualify, visit the CRA website at www.cra-arc.gc.ca.
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