A taxpayer may claim the Medical Expense Tax Credit for eligible expenses incurred in respect of himself or herself, his or her spouse or common-law partner, or his or her child who is under 18 years of age. Caregivers may also claim the credit for eligible expenses incurred in respect of a “dependent” relative if the caregiver pays medical or disability-related expenses of the dependent relative.

Currently, a caregiver may only claim the eligible expenses of a “dependent” relative that exceed the lesser of 3% of the dependant’s net income and an indexed dollar threshold ($2,052 in 2011), to a maximum of $10,000. In contrast, there is generally no limit on the amount of eligible expenses a taxpayer can claim for himself or herself, a spouse or common-law partner or a child under 18 years of age. The Budget proposes to remove this $10,000 limit on eligible expenses.

This measure will apply to the 2011 and subsequent taxation years.