Langley Invisalign Tips: Is Invisalign tax deductible in Canada?

Many Canadians wonder if they can save money on their taxes with Invisalign. Surprisingly, Invisalign is not tax deductible as a medical expense in Canada.

This article will guide you through other ways to manage the costs and what you need for your tax return.

Key Takeaways

In Canada, you can claim Invisalign as a medical expense on your tax return, including the cost for clear aligners used in orthodontic treatments.
To be eligible for deduction, total dental care costs have to exceed either $2,479 or 3% of your net income shown on line 23600 of your tax return.
You must collect and organize all receipts related to your Invisalign treatment plus get a prescription from your dentist or orthodontist to support your claim.
Most Canadian insurance plans cover up to half the cost of orthodontic treatments like Invisalign. Always check with your insurance company before starting treatment.
The refundable medical expense supplement offers additional financial assistance for families making it important to consult with a tax advisor to fully understand available benefits.

Understanding Invisalign as a Medical Expense

Invisalign is considered a medical expense because it involves orthodontic treatment for oral health. Comparing its eligibility for tax deduction with traditional braces, Invisalign’s clear aligners are worth considering when claiming medical expenses in Canada.

Eligibility for Tax Deduction in Canada

You can claim Invisalign as a medical expense on your T1 income tax and benefit return in Canada. This includes the cost for clear aligners used in orthodontic treatments to correct teeth alignment issues like underbite, overbite, crowded teeth, or just for improving oral health.

The Canadian tax system allows taxpayers to subtract eligible dental expenses from their taxable income, including services provided by Glow Orthodontics or any other certified provider of Langley Invisalign.

To qualify for this deduction, calculate your total eligible dental care costs and then reduce that amount by either $2,479 or 3% of your net income shown on line 23600 of your tax return, whichever is less.

Claims can cover a wide range of dental procedures beyond orthodontics such as fillings, cleanings, dentures, and implants if they are not reimbursed elsewhere. Moreover, it’s possible to include expenses paid within Canada or internationally for these treatments.

Comparing with Traditional Braces

Comparing Invisalign with traditional wires and brackets shows several key differences. Here’s a closer look in a table format:

Feature	Invisalign	Traditional Braces
Visibility	Almost invisible	Visible
Cost	Slightly more expensive	More affordable
Insurance Coverage	Sometimes better covered	Often covered
Applicability for Severe Cases	Not always suitable	Suitable
Ease of Eating and Cleaning	Removable for eating, drinking, and brushing	Stays in mouth, challenging to clean
Risk of Tooth Decay	Lower risk	Higher risk due to demineralization

Invisalign offers a different experience from traditional braces in more ways than one. Next, let’s explore the tax deduction details for Invisalign.

Tax Deduction Details for Invisalign

You can claim Invisalign as a medical expense on your tax return in Canada. Ensure to check Lines 33099 and 33199 for claiming medical expenses, along with the required documentation.

Lines 33099 and 33199: Claiming Medical Expenses

Filing a tax return in Canada lets you claim medical expenses, including costs for Invisalign. The Canada Revenue Agency (CRA) provides guidelines for these claims under lines 33099 and 33199.

Use Line 33099 to include total eligible medical expenses for yourself, your spouse or common-law partner, and kids under 18.
Deduct either $2,479 or 3% of your net income (line 23600) from your total eligible medical expenses on Line 33099.
For dependents aged 18 and older, line 33199 allows you to claim dental expenditures.
Subtract either $2,479 or 3% of the dependent’s net income from their total eligible expenses on Line 33199.
Collect all receipts related to your Invisalign treatment as the CRA might ask for these documents.
Consult with an accountant to ensure compliance with CRA requirements and maximize your tax deductions.
Understand that private health services plans sometimes cover orthodontic treatments like Invisalign; this coverage affects the amount you can claim.
If applicable, consider how the refundable medical expense supplement could increase your refund or decrease what you owe.

This process simplifies claiming Glow Orthodontics Invisalign as a medical expense on your Canadian tax returns, helping manage personal finance more effectively while ensuring legal compliance.

Documentation Required for Claims

After understanding how to claim medical expenses for services like Invisalign, knowing what documents you need is your next step. Gathering the right paperwork proves your eligibility for tax deductions in Canada. Here’s a detailed list:

Collect all receipts related to Invisalign treatment. Dental services often come with high costs, so keep these proofs of payment safe.
Get a prescription from your dentist or orthodontist. Canadian taxation laws require this document for dental expense claims.
Hold onto any written certification that the Invisalign treatment is medically necessary. Sometimes, insurers or accountants might ask for this to verify the need.
If you qualify for the disability tax credit, include Form T2201 (Disability Tax Credit Certificate). This form confirms your eligibility for additional tax support.
Organize invoices that detail every aspect of your treatment, from initial consultations to laser scanning and any follow-up sessions.
For those using insurance coverage, documentation from your insurance company showing what portion of the cost they covered can affect the amount you claim.
Keep a record of any direct payments made to dentists or orthodontists that were not reimbursed by an insurer.

This careful preparation will support your tax return and ensure you get the maximum benefit out of claiming Invisalign as a medical expense under Canada’s dental benefits scheme.

Additional Considerations

When considering Invisalign, it’s essential to evaluate potential insurance coverage and the availability of a refundable medical expense supplement. To further enhance your understanding, you might want to explore the tax implications related to orthodontic treatments.

Insurance Coverage for Invisalign

Most Canadian dental insurance plans cover up to half the cost of orthodontic treatments. Patients should confirm coverage details with their insurance company. It is crucial to consider seeking professional tax advice for guidance on navigating spousal income thresholds, especially when it comes to claiming tax benefits.

Additionally, some individuals opt for SureCure as a cost-effective alternative to Invisalign.

Seeking professional advice for tax planning is crucial in understanding insurance coverage and potential deductions related to orthodontic treatments.

Confirming coverage details with your insurer is essential before embarking on any orthodontic treatment.

Refundable Medical Expense Supplement

When considering the cost of dental treatments like Invisalign, it’s crucial to explore additional financial assistance options. The refundable medical expense supplement offers support for working Canadians with higher medical expenses and lower income.

This supplement can provide families with up to $1,300 per child for dental care, helping offset the costs associated with orthodontic treatments such as Invisalign. Consultation with a tax advisor is essential to determine eligibility and fully understand the benefits available through this valuable financial support.

Conclusion

In Canada, Invisalign is not eligible for tax deduction as a medical expense. Remember that traditional braces may be tax-deductible under specific circumstances. Ensure to carefully review the guidelines and talk to a tax professional before claiming any medical expenses on your tax return.

Be thorough with organizing and documenting all necessary receipts and prescriptions for potential claims in order to avoid any potential issues during the tax process. Always seek guidance if you are unsure about eligibility or requirements when it comes to dental expenses.

FAQs

1. Can you deduct Invisalign on your tax return in Canada?

Yes, you can include Invisalign as a medical expense on your tax return in Canada. It falls under orthodontic treatment like braces, making it eligible for the medical expense tax credit.

2. What is the difference between Braces and Invisalign when filing taxes?

There’s no difference between claiming braces or Invisalign; both are considered dental treatments that qualify for the medical expense tax credit on your Canadian tax return.

3. How does net income affect my ability to claim Invisalign?

The amount you can claim for any medical expenses, including Invisalign, depends on your net income. Lower net income might increase the refundable part of your tax credit.

4. Are there other dental items I can claim besides Invisalign?

Yes, besides Invisalign or traditional braces, you can also claim expenses for retainers, dental implants, and veneers as part of the medical expense tax credit.

5. Do insurance payments impact my ability to deduct Invisalign costs?

If insurance companies cover part of your treatment cost for items like premium retainers or scanners used with invisible aligners (Invisalign), only the amount not reimbursed by insurance is deductible on your Canadian tax return.