Ottawa is making it easier for taxpayers to claim for the medical expense tax credit when caring for a dependent relative such as a child, grandchild, parent, grandparent or sibling.

Under the current regime, medical expenses on behalf of dependent can be claimed together with the taxpayer’s own medical expenses when the total exceeds 3% of the taxpayer’s income. However, the claimable expenses for the dependent are reduced under a complex calculation known as the “notch provision” — 4.25 times the amount by which the dependent’s income exceeds the basic personal amount ($8,012 in 2004).

The budget handed down Tuesday proposes to remove this barrier by allowing taxpayers to pool the expense claims made for minor children with their own. For expenses incurred on behalf of other dependent relatives, the taxpayer will be able to claim for the amount that exceeds 3% of the dependent’s income.