Medical Expense Tax Credit & Learning Disabilities

Medical Expenses for tax purposes and disability tax credit

All information is provided purely as a guide to what may be available based on recent CRA publications. Individuals should consult with a tax professional or the Canada Revenue Agency to confirm current law and entitlements. Eligible Medical Expenses include the psychological educational assessment undertaken by a private psychologist.

Income Tax Folio S1-F1-C1, Medical Expense Tax Credit

Series 1: Individuals
Folio 1: Health and Medical
Chapter 1: Medical Expense Tax Credit

References to medical professionals
1.20 This Chapter uses the terms medical doctor, medical practitioner, as well as various other terms to describe individuals involved in the medical profession, in a way that is consistent with the terms found in the Act. Medical practitioner encompasses a broad range of individuals in the medical profession.

1.21 For purposes of the medical expense tax credit as well as the disability tax credit (see Income Tax Folio S1-F1-C2) and the disability supports deduction (see Income Tax Folio S1-F1-C3, subsection 118.4(2) provides that a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, nurse practitioner, occupational therapist, optometrist, pharmacist, physiotherapist, psychologist, or speech-language pathologist is a reference to a person who is authorized to practice as such, according to the following laws:

a. for a service rendered to an individual, the laws of the jurisdiction in which the service is rendered;
b. for a certificate issued for an individual, the laws of the jurisdiction in which the individual resides or of a province; and
c. for a prescription issued to an individual for property to be provided to or for the use of the individual, the laws of the jurisdiction in which the individual resides, of a province or of the jurisdiction in which the prescription is filled.

 

Reading Services

1.105 An amount paid for reading services for a patient who is blind or who has a severe learning disability is an eligible medical expense under paragraph 118.2(2)(l.43), provided the payment is made to a person in the business of providing such services and the patient has been certified in writing by a medical practitioner to be a person who requires such services because of the impairment.

 

Tutoring services

1.117 Paragraph 118.2(2)(l.91) provides that eligible medical expenses may include amounts paid as remuneration for tutoring services provided to a patient where the following conditions are satisfied:

• • the tutoring is supplementary to the primary education of the patient;
  • the patient has a learning disability or a mental impairment;
  • a medical practitioner has certified in writing that the patient requires the tutoring services because of that disability or impairment; and
  • the payment must be made to a person ordinarily engaged in the business of providing tutoring services to persons who are not related to the payee.

1.122 The devices and equipment specified in the various paragraphs of section 5700 of the Regulations are described below:
p) A device or software designed to enable a patient who is blind or who has a severe learning disability, to read print (paragraph 5700(l.1)).

 

Medical expense credit

118.2 (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula

A x [(B – C) + D]

where
A
is the appropriate percentage for the taxation year;
B
is the total of the individual’s medical expenses in respect of the individual, the individual’s spouse or common-law partner or a child of the individual who has not attained the age of 18 years before the end of the taxation year

• • (a) that are evidenced by receipts filed with the Minister,
  • (b) that were not included in determining an amount under this subsection, section 64 or subsection 122.51(2), for a preceding taxation year,
  • (c) that are not included in determining an amount under this subsection, section 64 or subsection 122.51(2), by any other taxpayer for any taxation year, and
  • (d) that were paid by the individual or the individual’s legal representative within any period of 12 months that ends in the taxation year or, if those expenses were in respect of a person (including the individual) who died in the taxation year, within any period of 24 months that includes the day of the person’s death;

C
is the lesser of $1,813 and 3% of the individual’s income for the taxation year; and
D
is the total of all amounts each of which is, in respect of a dependant of the individual (within the meaning assigned by subsection 118(6), other than a child of the individual who has not attained the age of 18 years before the end of the taxation year), the amount determined by the formula
E – F
where
E
is the total of the individual’s medical expenses in respect of the dependant

• • (a) that are evidenced by receipts filed with the Minister,
  • (b) that were not included in determining an amount under this subsection, or subsection 122.51(2), in respect of the individual for a preceding taxation year,
  • (c) that are not included in determining an amount under this subsection, or subsection 122.51(2), by any other taxpayer for any taxation year, and
  • (d) that were paid by the individual or the individual’s legal representative within the period referred to in paragraph (d) of the description of B; and

F
is the lesser of $1,813 and 3% of the dependant’s income for the taxation year.

Marginal note: Medical expenses

(2) For the purposes of subsection (1), a medical expense of an individual is an amount paid

• (a) to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services provided to a person (in this subsection referred to as the “patient”) who is the individual, the individual’s spouse or common-law partner or a dependant of the individual (within the meaning assigned by subsection 118(6)) in the taxation year in which the expense was incurred;