Medical Expenses on a Deceased Person's Final Return in Canada

If you are the executor or legal representative of someone who has died, the final T1 return may be the place to claim their medical costs. The rules are more generous than for a living taxpayer, but they come with limits that are easy to miss.

This article explains the special 24-month period, how the threshold works, how to split expenses across more than one return, and what to gather before you file. The dollar figures change each year, so always confirm them for the year of death.

This article covers Canadian federal tax law, which applies in every province.

The 24-month period that includes the date of death

For a person who died in the year, medical expenses may be paid within any period of 24 months that includes the day of death. The CRA applies the same idea: the final return can cover any 24-month period that includes the date of death, as long as the expenses were not claimed elsewhere.

The point of the longer period is that a final illness often produces costs both before and after death. Choosing the period that captures the most eligible expenses can make the claim larger.

An expense that was already claimed on another return cannot be claimed a second time. Check earlier returns for the deceased, and any return for a spouse or partner, before you include a receipt.

How the threshold works

You claim only the amount above the lesser of $2,834 or 3% of net income (line 23600), using net income from all returns filed for the year of death. These figures apply to the 2025 tax year.

The dollar amounts are indexed each year, so they will be different for other years. Look up the figures for the year of death before you calculate anything.

Splitting expenses across returns

Medical expenses can be split between the final return and other returns filed for the year of death. Optional returns are not required, but they may reduce or eliminate tax. They include the rights or things return, the partner or proprietor return and the return for income from a graduated rate estate.

When you split deductions and credits, the total of the claims cannot be more than what would have been allowed if only the final return were filed. Because the threshold uses net income from all returns, it is worth comparing a few ways of splitting before you decide. An accountant can help with this.

Dependants who died and the refundable supplement

Expenses the deceased paid for a dependant who also died in the year are claimed on line 33199. This does not apply to a dependent child under 18.

A refundable medical expense supplement of up to $1,504 may be available if there is an amount on line 21500 or 33200. Whether it applies depends on the facts of the return, so confirm it when you prepare the filing.

What is not deductible, and what to do next

Funeral expenses, probate fees and estate administration fees are not deductible. Do not mix them in with medical receipts.

• Confirm the date of death and list the 24-month periods that include it.
• Gather receipts and check that none were claimed on another return.
• Attach receipts to the return.
• Find the threshold figures for the year of death, since they are indexed each year.
• Decide whether any expenses belong on an optional return, keeping the total within the final-return limit.
• Check due dates for the final return, because payment dates do not move with later filing dates.

If the estate is complicated, or you are unsure how to split claims, speak with a lawyer or accountant before filing.

Frequently asked questions