The Canada Revenue Agency has confirmed that medical marijuana bought with a prescription is going to be an allowable medical expense on taxes.
“This is an important step, because it allows patients to write off a major component of their health-care costs,” a spokesperson told CBC News.
The expense is based on a formula calculated on taxable income. Taxpayers will likely need to reach a high threshold of allowable medical expenses to qualify for any tax relief. With the cost of legally-licensed marijuana being relatively high, many who use marijuana under a prescription may be eligible.
It is estimated that an average cost per patient is about $7.60 a day. A full year’s prescription would be about $2,774. The costs can be lower or higher, depending on dosage and type.
Canada, like many states in America, has legalized marijuana for medical use, and citizens who qualify for medical marijuana are allowed to purchase it from dispensaries.