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Medical Loop


#1

Where medical is manually allocated, we’re running into some issues that seem to keep us in a loop.

When there is pension splitting, one client above the threshold for the age amount and one not.

It seems like we get stuck in a loop where income is adjusted for the pension split which changes the age credit amount, which changes the 3% of net income calculation for medical, which then changes the pension split as the program searches to maximize the refund.

Any ideas on this one?

Thanks!


#2

Turn off the optimization and then try manually


#3

Medical is always manual.
The optimization is only for the period claimed, not the person.


#4

I noticed that medical doesn’t work as I expected on pension split. So I manually compared the allocation. No big deal on that regard.

What I did notice is that I don’t know how to optimize the medical claim period. There is no medical optimize button. I have a lot of elderly and infirm clients. I have had two deceased returns with medical expenses totally over $150,000 and spanning 18 months.

I really need an optimize button for ideal medical period for any twelve month period ending in the current tax year.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-330-331-eligible-medical-expenses-you-claim-on-your-tax-return.html

Lines 330 and 331 – Eligible medical expenses you can claim on your tax return
On this page
Which medical expenses can you claim?
How do you claim eligible medical expenses on your tax return?
What documents do you need to support your medical expenses claim?
What if you claim medical expenses for someone who died?
What are the related credits to medical expenses?
Which medical expenses can you claim?
To know for whom you can claim medical expenses, see How do you claim eligible medical expenses on your tax return?

You can claim only eligible medical expenses on your tax return if you, or your spouse or common-law partner:

  • paid for the medical expenses in any 12-month period ending in 2017
  • did not claim them in 2016

Generally, you can claim all amounts paid, even if they were not paid in Canada.