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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
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