The government feels that it is reasonable to expect us to pay 3% of our income towards medical expenses. If you had to pay more than that, you can include the extra amount in your non-refundable tax credit calculations. You can claim a wide variety of medical expenses from drugs to hair transplants. Check the Guide to see just what you can claim as a medical expense.

What do I do now that I have worked out my non-refundable tax credits?
You subtract the amount of your total non-refundable tax credits from the amount of federal tax you had to pay.

When you have done that, you go to page 4 of your T1 General and subtract the amount of tax you have already paid from the amount you have to pay.

There are three possibilities here.

1. the amount you owe is the amount you have paid. You really owe nothing.

2. the amount you owe is more than the tax you have already paid, so you have to send a cheque to the government for the amount you still owe.

3. The best one is this one. The amount you have already paid is more than the amount you had to pay. The government will send you a cheque for the balance. This is what people mean when they say they have got a tax refund. A tax refund is not the same as a GST credit or a CCTB payment. Anyone might get a tax refund. Only people with low or modest incomes or several children will get a GST credit or CCTB cheque.