Can an Estate Claim Medical Expenses on a Deceased Person's Return?

If someone you love had large medical bills in the months before they died, you may wonder whether any of that cost can come back to the estate as a tax saving. It can, in many cases, through the medical expense claim on the deceased's final tax return.

This article explains who makes the claim, how the 24-month window works, how the claim can be split across returns, and what the CRA does not allow. It is general information, not advice on your particular estate.

Who files the return and where the claim goes

The deceased's legal representative files the returns. A final T1 return must be filed for every person who dies. Medical expenses are one of the claims made on that return, on lines 33099 and 33199.

Besides the final return, up to three optional T1 returns may be filed. They are not required, but filing them can reduce or eliminate tax, because eligible income goes on the optional return instead of the final return. This matters for medical expenses because the claim can be split between the final and optional returns.

The 24-month window

For a person who died in 2025, medical expenses paid in any 24-month period that includes the date of death can be claimed, as long as they were not claimed for any other year. In plain terms, you are not limited to the calendar year of death. A bill paid before death and a bill paid by the estate after death could both fall in the same window.

The wording above comes from the rules for a 2025 death. If the person died in a different year, confirm the rule for that year before relying on it.

• Gather receipts and statements for every medical, dental, care and prescription cost paid in the period you are considering.
• Note the date each bill was actually paid, since the window looks at when expenses were paid.
• Keep track of any amount already claimed on a prior return, because an expense cannot be claimed twice.

The reduction and splitting the claim

Medical expenses claimed on a deceased person's return are reduced by the lesser of $2,834 or 3% of total net income reported on all returns. That dollar figure is year-specific, so check the amount that applies to the year of death.

The claim can be split between the final return and the optional returns. The goal is generally to use the claim where it saves the most tax, but how that works depends on the income reported on each return, so an accountant can run the numbers.

What cannot be claimed

Funeral expenses, probate fees and fees to administer the estate cannot be deducted as personal expenses on the deceased's returns. Families sometimes assume the funeral bill reduces the final tax bill. It does not.

Other final-return claims exist alongside medical expenses, including donations and the Canada workers benefit on line 45300. Whether any apply depends on the person's circumstances.

Deadlines and what to do next

If death was between January 1 and October 31, the final return is due April 30 of the following year. If death was between November 1 and December 31, it is due 6 months after the date of death. If the deceased or their spouse or common-law partner carried on a business, a different filing date can apply. A late return can attract a penalty of 5% of the balance owing, plus 1% for each full month late, up to 12 months.

If you miss a deadline because of a death in the immediate family or serious illness, the CRA can cancel or waive penalties and interest, though meeting the criteria does not guarantee relief.

• Confirm who the legal representative is and that they are filing.
• Collect all medical receipts for a 24-month period around the date of death.
• Check the year of death, since the rules and dollar figure are year-specific.
• Ask an accountant whether splitting the claim with an optional return would save tax.
• Do not try to deduct funeral or probate costs as personal expenses.

Frequently asked questions