What Are Dental Implants?
Dental implants are a permanent teeth replacement option for people with damaged or missing teeth. Implants include metal “roots” planted into the natural jawline with natural-looking teeth placed on top of the roots.
They function nearly the same as natural teeth and can be life-lasting if properly maintained. Implants are appropriate for one or more teeth.
People opt to get dental implants in place of dentures or bridges because they are more durable and have less hassle. They also look more natural and help people with existing dental issues restore confidence in their smiles.
One of the drawbacks of dental implants is the cost. Understandably, they are more expensive than dentures or bridges, which means they aren’t an option for some candidates.
Luckily, there are ways to reduce the cost of implants, including using a tax deduction. Here’s what you need to know.
Why Would Someone Get Dental Implants?
Most people choose dental implants because they want a natural, long-lasting option for replacing their original teeth.
Other dental work options, including dentures and bridges, can be uncomfortable and cause problems with chewing and speaking. This isn’t the case with a dental implant, which is why many people pay more for this option than they would with dentures and bridges.
Dental implants are also permanent. Once installed, as long as you care for them properly and maintain good oral health, they will last for the rest of your life.
They don’t need adjusting or replacing; they perform just as your natural teeth would in old age. You never need to worry about dental implants shifting or moving over time.
Finally, dental implants are an excellent option for people concerned about preserving the health of their jawbone. Implants stimulate bone growth instead of triggering the bone loss common for those missing teeth.
Tax Deductions in Canada
A tax deduction is an expense that you can subtract from your taxable income. This means that the total amount you owe taxes is less than it would be without the deduction.
There are many different tax deductions, but some of the most common include:
- Business expenses
- Professional fees
- Vehicle expenses
- Medical expenses
Not all of these expenses are tax deductible, but many of the items within these categories are tax deductible. There are specific rules that apply to each deduction.
A tax professional can help you determine what eligible expenses you have that qualify as deductible. Information about the guidelines is also available via the Canada Revenue Agency (CRA). The site offers a search tool that allows you to search by procedure or product to see what’s eligible.
In the case of medical deductions, Canadians can claim eligible medical expenses on their annual income tax returns to reduce their taxable income, just as they would with any type of deduction.
To qualify, a medical expense must meet certain criteria according to the CRA guidelines, including the expense being medically necessary.
Additionally, the expenses cannot be covered by an insurance plan and must exceed a certain threshold based on each person’s income.
Some of the most common deductible medical expenses in Canada include:
- Medical devices
- Prescription medication
- Dental services
- Some medical treatments
If you believe you have a deductible medical expense to claim, keep detailed, accurate records of the expense so you can support your claim if necessary.
Are Dental Implants “Medically Necessary?”
Whether or not a dental implant is considered medically necessary varies from case to case. It’s important to discuss your situation with your dentist who can help you determine if your need for implants will be considered medically necessary.
It depends on why you’re missing teeth, which teeth are missing, and whether or not the missing teeth interfere with your ability to eat or speak.
Are Dental Implants Eligible for Tax Deduction?
Most dental expenses are eligible for tax deduction in Canada. However, as already mentioned, the dental procedure must be medically necessary.
If you are getting implants for cosmetic purposes only, you may not be able to claim the expense. However, in most cases, dental implants are the appropriate option to help someone avoid problems with chewing or speaking, in addition to cosmetic improvements.
Your dental health professionals can help you determine if your need for implants is medically necessary. But even if the dental procedure is categorized as such, it’s important to speak to an experienced tax professional who can evaluate your situation and help you determine whether or not to include your implant procedure as a tax deduction.
Documentation and Proof of the Expense
No matter how “airtight” you consider your claim that dental implants are tax deductible, it’s still important to keep documentation and proof of the procedure to support your claim. Documentation that can support your claim includes:
- Receipts
- Medical records
- Name and address of the surgeon and/or your dentist
Hold onto these records for at least six years after the treatment. This is because the CRA can call tax deductions into question for this amount of time.
To claim eligible medical expenses, use Schedule 1, Federal Tax, and provincial or territorial tax forms.
Limits and Restrictions
You should be aware of some limits if you intend to use your dental implants as a tax deduction.
According to the CRA, most dental expenses can be claimed as medical expenses. However, the cost of the implant must exceed a certain threshold which varies based on your net income.
In some cases, you can use your medical expenses throughout the year cumulatively to meet this dental benefit threshold.
Again, make sure you keep all paperwork and documentation associated with the dental care procedure and consult a tax professional if you have questions or concerns.
