dave@lsuc.UUCP (04/08/87)
When one spouse has a substantially higher income than the other, it's normal for the higher-income spouse to want to claim deductions which are allowed to either (such as exemptions for dependent children, or charitable donations). That's because a higher income is taxed at a higher marginal rate. The medical-expenses deduction is an interesting exception, however. You may have to do the calculation both ways to find out which one saves you more. Medical expenses in excess of 3% of "net income" are deductible. In many cases, the higher-income spouse will have net income so high that there is little or no medical expense left after deducting 3% of net income. (For example, with a $30,000 net income, you can't claim the first $900 of medical expenses.) So while the lower-income spouse gets less benefit per dollar of deduction used, more dollars can be claimed. Note, by the way, that prescription glasses and many other items qualify as medical expenses. Also, you may pick any 12-month period ending in the year to total up your claims. For example, when filing for 1986 you could claim expenses running from August 1985 to July 1986, if that gives you the best combination. (Of course, you can't claim expenses you already claimed in a previous year.) Call your local district taxation office if you have questions as to whether a specific expense qualifies as a medical expense. David Sherman, Consultant The Law Society of Upper Canada Toronto -- { seismo!mnetor cbosgd!utgpu watmath decvax!utcsri ihnp4!utzoo } !lsuc!dave