Share, Split & Combine for Spousal Tax Savings – Tip #2
This is the second of a 5-part financial tips series focusing on tax savings opportunities and strategies for spouses.
Spousal Tax Savings Tip #2 - Medical Expenses
Spouses can combine the medical expenses that they have incurred for themselves as well as for those of a dependent child (under the age of 18) on the return of the lower earning spouse. That's because this non-refundable tax credit is based on those eligible medical expenses, such as dental bills and prescriptions drugs etc., that are in excess of the lower of 3% of the taxpers (lower earning spouse) net income or $2,171. A 15% federal tax credit is available on expenses above this amount to a maximum of $10,000. The list of eligible medical expenses now includes the cost of designing therapy for someone who qualifies for the disability tax credit and the cost of service animals that help those afflicted with severe diabetes.
In The Series:
Courtesy of Marta Stiteler, MA CFP CIM CLU, Financial Planner at Pillar Retirement Group/Worldsource Financial Management Inc.
Marta can be reached at: Pillar Retirement Group, 50 Coreslab Drive, Flamborough ON L9H 0B2. T: 905-690-5038 E: firstname.lastname@example.org
The information provided herein is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting, or professional advice. Readers should consult their own subject matter experts for advice on the specific circumstances before taking any action. This information has been obtained from sources, which we believe to be reliable, but we cannot guarantee its accuracy or completeness. Worldsource Financial Management Inc. does not assume any liability for any inaccuracies in the information provided. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual Funds and some Segregated Funds are offered by Marta Stiteler through Worldsource Financial Management Inc. while other products and services are offered through Marta Stiteler.