In order for you to be eligible to claim your cannabis medicine as an expense, you must have all of the receipts and all purchases must be made from a licensed medical cannabis producer.
If you have any questions about claiming medical cannabis on your tax returns, it is best to consult with a licensed accountant or visit “Lines 33099 and 33199 – Eligible medical expenses you can claim on your tax return” page at the Canadian Revenue Agency website.
Lets have a look to CRA considerations with an example:
- Total medical expenses (cannabis plus any other items including prescriptions and dental)
- Less 3% of your net income (up to a maximum of $2,180)
If your income is $50,000 per year, and your medical cannabis expenses are $2,000.00 per year.
The 3% of your net income = 0.03 x $50,000 = $1,500
Then how much you spend – 3% of your net income = $2,000 – $1,500 = $500
Therefore, you would be eligible to claim $500 on your taxes.