Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note: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;

  • (b) as remuneration for one full-time attendant (other than a person who, at the time the remuneration is paid, is the individual’s spouse or common-law partner or is under 18 years of age) on, or for the full-time care in a nursing home of, the patient in respect of whom an amount would, but for paragraph 118.3(1)(c), be deductible under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the expense was incurred;

  • (b.1) as remuneration for attendant care provided in Canada to the patient if

    • (i) the patient is a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the expense was incurred,

    • (ii) no part of the remuneration is included in computing a deduction claimed in respect of the patient under section 63 or 64 or paragraph (b), (b.2), (c), (d) or (e) for any taxation year,

    • (iii) at the time the remuneration is paid, the attendant is neither the individual’s spouse or common-law partner nor under 18 years of age, and

    • (iv) each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number,

    to the extent that the total of amounts so paid does not exceed $10,000 (or $20,000 if the individual dies in the year);

  • (b.2) as remuneration for the patient’s care or supervision provided in a group home in Canada maintained and operated exclusively for the benefit of individuals who have a severe and prolonged impairment, if

    • (i) because of the patient’s impairment, the patient is a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the expense is incurred,

    • (ii) no part of the remuneration is included in computing a deduction claimed in respect of the patient under section 63 or 64 or paragraph (b), (b.1), (c), (d) or (e) for any taxation year, and

    • (iii) each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number;

  • (c) as remuneration for one full-time attendant on the patient in a self-contained domestic establishment in which the patient lives, if

    • (i) the patient is, and has been certified in writing by a medical practitioner to be, a person who, by reason of mental or physical infirmity, is and is likely to be for a long-continued period of indefinite duration dependent on others for the patient’s personal needs and care and who, as a result, requires a full-time attendant,

    • (ii) at the time the remuneration is paid, the attendant is neither the individual’s spouse or common-law partner nor under 18 years of age, and

    • (iii) each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number;

  • (d) for the full-time care in a nursing home of the patient, who has been certified in writing by a medical practitioner to be a person who, by reason of lack of normal mental capacity, is and in the foreseeable future will continue to be dependent on others for the patient’s personal needs and care;

  • (e) for the care, or the care and training, at a school, an institution or another place of the patient, who has been certified in writing by an appropriately qualified person to be a person who, by reason of a physical or mental handicap, requires the equipment, facilities or personnel specially provided by that school, institution or other place for the care, or the care and training, of individuals suffering from the handicap suffered by the patient;

  • (f) for transportation by ambulance to or from a public or licensed private hospital for the patient;

  • (g) to a person engaged in the business of providing transportation services, to the extent that the payment is made for the transportation of

    • (i) the patient, and

    • (ii) one individual who accompanied the patient, where the patient was, and has been certified in writing by a medical practitioner to be, incapable of travelling without the assistance of an attendant

    from the locality where the patient dwells to a place, not less than 40 kilometres from that locality, where medical services are normally provided, or from that place to that locality, if

    • (iii) substantially equivalent medical services are not available in that locality,

    • (iv) the route travelled by the patient is, having regard to the circumstances, a reasonably direct route, and

    • (v) the patient travels to that place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the patient to travel to that place to obtain those services;

  • (h) for reasonable travel expenses (other than expenses described in paragraph (g)) incurred in respect of the patient and, where the patient was, and has been certified in writing by a medical practitioner to be, incapable of travelling without the assistance of an attendant, in respect of one individual who accompanied the patient, to obtain medical services in a place that is not less than 80 km from the locality where the patient dwells if the circumstances described in subparagraphs (g)(iii) to (v) apply;

  • (i) for, or in respect of, an artificial limb, an iron lung, a rocking bed for poliomyelitis victims, a wheel chair, crutches, a spinal brace, a brace for a limb, an ileostomy or colostomy pad, a truss for hernia, an artificial eye, a laryngeal speaking aid, an aid to hearing, an artificial kidney machine, phototherapy equipment for the treatment of psoriasis or other skin disorders, or an oxygen concentrator, for the patient;

  • (i.1) for or in respect of diapers, disposable briefs, catheters, catheter trays, tubing or other products required by the patient by reason of incontinence caused by illness, injury or affliction;

  • (j) for eye glasses or other devices for the treatment or correction of a defect of vision of the patient as prescribed by a medical practitioner or optometrist;

  • (k) for an oxygen tent or other equipment necessary to administer oxygen or for insulin, oxygen, liver extract injectible for pernicious anaemia or vitamin B12 for pernicious anaemia, for use by the patient as prescribed by a medical practitioner;

  • (l) on behalf of the patient who is blind or profoundly deaf or has severe autism, severe diabetes, severe epilepsy, severe mental impairment or a severe and prolonged impairment that markedly restricts the use of the patient’s arms or legs,

    • (i) for an animal that is

      • (A) specially trained to

        • (I) in the case of severe mental impairment, perform specific tasks (excluding, for greater certainty, the provision of emotional support) that assist the patient in coping with the impairment, and

        • (II) in all other cases, assist the patient in coping with the impairment, and

      • (B) provided by a person or organization one of whose main purposes is such training of animals,

    • (ii) for the care and maintenance of such an animal, including food and veterinary care,

    • (iii) for reasonable travel expenses of the patient incurred for the purpose of attending a school, institution or other facility that trains, in the handling of such animals, individuals who are so impaired, and

    • (iv) for reasonable board and lodging expenses of the patient incurred for the purpose of the patient’s full-time attendance at a school, institution or other facility referred to in subparagraph (iii);

  • (l.1) on behalf of the patient who requires a bone marrow or organ transplant,

    • (i) for reasonable expenses (other than expenses described in subparagraph (ii)), including legal fees and insurance premiums, to locate a compatible donor and to arrange for the transplant, and

    • (ii) for reasonable travel, board and lodging expenses (other than expenses described in paragraphs (g) and (h)) of the donor (and one other person who accompanies the donor) and the patient (and one other person who accompanies the patient) incurred in respect of the transplant;

  • (l.2) for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling, provided that such expenses

    • (i) are not of a type that would typically be expected to increase the value of the dwelling, and

    • (ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;

  • (l.21) for reasonable expenses relating to the construction of the principal place of residence of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, that can reasonably be considered to be incremental costs incurred to enable the patient to gain access to, or to be mobile or functional within, the patient’s principal place of residence, provided that such expenses

    • (i) are not of a type that would typically be expected to increase the value of the dwelling, and

    • (ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;

  • (l.3) for reasonable expenses relating to rehabilitative therapy, including training in lip reading and sign language, incurred to adjust for the patient’s hearing or speech loss;

  • (l.4) on behalf of the patient who has a speech or hearing impairment, for sign language interpretation services or real-time captioning services, to the extent that the payment is made to a person in the business of providing such services;

  • (l.41) on behalf of the patient who has a mental or physical impairment, for note-taking services, if

    • (i) the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, and

    • (ii) the payment is made to a person in the business of providing such services;

  • (l.42) on behalf of the patient who has a physical impairment, for the cost of voice recognition software, if the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires that software;

  • (l.43) on behalf of the patient who is blind or has a severe learning disability, for reading services, if

    • (i) the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, and

    • (ii) the payment is made to a person in the business of providing such services;

  • (l.44) on behalf of the patient who is blind and profoundly deaf, for deaf-blind intervening services, if the payment is made to a person in the business of providing those services;

  • (l.5) for reasonable moving expenses (within the meaning of subsection 62(3), but not including any expense deducted under section 62 for any taxation year) of the patient, who lacks normal physical development or has a severe and prolonged mobility impairment, incurred for the purpose of the patient’s move to a dwelling that is more accessible by the patient or in which the patient is more mobile or functional, if the total of the expenses claimed under this paragraph by all persons in respect of the move does not exceed $2,000;

  • (l.6) for reasonable expenses relating to alterations to the driveway of the principal place of residence of the patient who has a severe and prolonged mobility impairment, to facilitate the patient’s access to a bus;

  • (l.7) for a van that, at the time of its acquisition or within 6 months after that time, has been adapted for the transportation of the patient who requires the use of a wheelchair, to the extent of the lesser of $5,000 and 20% of the amount by which

    • (i) the amount paid for the acquisition of the van

    exceeds

    • (ii) the portion, if any, of the amount referred to in subparagraph (i) that is included because of paragraph (m) in computing the individual’s deduction under this section for any taxation year;

  • (l.8) for reasonable expenses (other than amounts paid to a person who was at the time of the payment the individual’s spouse or common-law partner or a person under 18 years of age) to train the individual, or a person related to the individual, if the training relates to the mental or physical infirmity of a person who

    • (i) is related to the individual, and

    • (ii) is a member of the individual’s household or is dependent on the individual for support;

  • (l.9) as remuneration for therapy provided to the patient because of the patient’s severe and prolonged impairment, if

    • (i) because of the patient’s impairment, an amount may be deducted under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the remuneration is paid,

    • (ii) the therapy is prescribed by, and administered under the general supervision of,

      • (A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, and

      • (B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment,

    • (iii) at the time the remuneration is paid, the payee is neither the individual’s spouse or common-law partner nor under 18 years of age, and

    • (iv) each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual’s Social Insurance Number;

  • (l.91) as remuneration for tutoring services that are rendered to, and are supplementary to the primary education of, the patient who

    • (i) has a learning disability or a mental impairment, and

    • (ii) has been certified in writing by a medical practitioner to be a person who, because of that disability or impairment, requires those services,

    if the payment is made to a person ordinarily engaged in the business of providing such services to individuals who are not related to the payee;

  • (l.92) as remuneration for the design of an individualized therapy plan for the patient because of the patient’s severe and prolonged impairment, if

    • (i) because of the patient’s impairment, an amount would be, if this Act were read without reference to paragraph 118.3(1)(c), deductible under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year in which the remuneration is paid,

    • (ii) the plan is required to access public funding for specialized therapy or is prescribed by

      • (A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or

      • (B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment,

    • (iii) the therapy set out in the plan is prescribed by and, if undertaken, administered under the general supervision of

      • (A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or

      • (B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment, and

    • (iv) the payment is made to a person ordinarily engaged in a business that includes the design of such plans for individuals who are not related to the payee;

  • (m) for any device or equipment for use by the patient that

    • (i) is of a prescribed kind,

    • (ii) is prescribed by a medical practitioner,

    • (iii) is not described in any other paragraph of this subsection, and

    • (iv) meets such conditions as are prescribed as to its use or the reason for its acquisition;

    to the extent that the amount so paid does not exceed the amount, if any, prescribed in respect of the device or equipment;

  • (n) for

    • (i) drugs, medicaments or other preparations or substances (other than those described in paragraph (k))

      • (A) that are manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function,

      • (B) that can lawfully be acquired for use by the patient only if prescribed by a medical practitioner or dentist, and

      • (C) the purchase of which is recorded by a pharmacist, or

    • (ii) drugs, medicaments or other preparations or substances that are prescribed by regulation;

  • (o) for laboratory, radiological or other diagnostic procedures or services together with necessary interpretations, for maintaining health, preventing disease or assisting in the diagnosis or treatment of any injury, illness or disability, for the patient as prescribed by a medical practitioner or dentist;

  • (p) to a person authorized under the laws of a province to carry on the business of a dental mechanic, for the making or repairing of an upper or lower denture, or for the taking of impressions, bite registrations and insertions in respect of the making, producing, constructing and furnishing of an upper or lower denture, for the patient;

  • (q) as a premium, contribution or other consideration under a private health services plan in respect of one or more of the individual, the individual’s spouse or common-law partner and any member of the individual’s household with whom the individual is connected by blood relationship, marriage, common-law partnership or adoption, except to the extent that the premium, contribution or consideration is deducted under subsection 20.01(1) in computing an individual’s income from a business for any taxation year;

  • (r) on behalf of the patient who has celiac disease, the incremental cost of acquiring gluten-free food products as compared to the cost of comparable non-gluten-free food products, if the patient has been certified in writing by a medical practitioner to be a person who, because of that disease, requires a gluten-free diet;

  • (s) for drugs obtained under Health Canada’s Special Access Programme in accordance with sections C.08.010 and C.08.011 of the Food and Drug Regulations and purchased for use by the patient;

  • (t) for medical devices obtained under Health Canada’s Special Access Programme in accordance with Part 2 of the Medical Devices Regulations and purchased for use by the patient;

  • (u) on behalf of the patient who is the holder of a medical document (as defined in subsection 264(1) of the Cannabis Regulations) to support their use of cannabis for medical purposes, for the cost of cannabis, cannabis oil, cannabis plant seeds or cannabis products purchased for medical purposes from a holder of a licence for sale (as defined in subsection 264(1) of the Cannabis Regulations); or

  • (v) to a fertility clinic, or donor bank, in Canada as a fee or other amount paid or payable, to obtain sperm, ova or embryos to enable the conception of a child by the individual, the individual’s spouse or common-law partner or a surrogate mother on behalf of the individual.

• Marginal note:Cosmetic purposes

  (2.1) The medical expenses referred to in subsection (2) do not include amounts paid for medical or dental services, nor any related expenses, provided purely for cosmetic purposes, unless necessary for medical or reconstructive purposes.

• Marginal note:Fertility expenses

  (2.2) An amount is deemed to be a medical expense of an individual for the purposes of this section if the amount

  • (a) is paid for the purpose of a patient (within the meaning of subsection (2)) conceiving a child; and

  • (b) would be a medical expense of the individual (within the meaning of subsection (2)) if the patient were incapable of conceiving a child because of a medical condition.

• Marginal note:Surrogacy expenses

  (2.21) An amount is deemed to be a medical expense of an individual for the purposes of this section if the amount

  • (a) is paid by the individual or the individual’s spouse or common-law partner;

  • (b) is

    • (i) an expenditure described under any of sections 2 to 4 of the Reimbursement Related to Assisted Human Reproduction Regulations, or

    • (ii) paid in respect of a surrogate mother or donor and would be an expenditure described in subparagraph (i) if it was paid to the surrogate mother or donor;

  • (c) would be a medical expense of the individual (within the meaning of subsection (2)) if the amount was paid in respect of a good or service provided to the individual or the individual’s spouse or common-law partner;

  • (d) is an expense incurred in Canada; and

  • (e) is paid for the purpose of the individual becoming a parent.

• Marginal note:Deemed medical expense

  (3) For the purposes of subsection (1),

  • (a) any amount included in computing an individual’s income for a taxation year from an office or employment in respect of a medical expense described in subsection (2) paid or provided by an employer at a particular time shall be deemed to be a medical expense paid by the individual at that time; and

  • (b) there shall not be included as a medical expense of an individual any expense to the extent that

    • (i) the individual,

    • (ii) the person referred to in subsection (2) as the patient,

    • (iii) any person related to a person referred to in subparagraph (i) or (ii), or

    • (iv) the legal representative of any person referred to in any of subparagraphs (i) to (iii)

  is entitled to be reimbursed for the expense, except to the extent that the amount of the reimbursement is required to be included in computing income and is not deductible in computing taxable income.

• Marginal note:Deemed payment of medical expenses

  (4) Where, in circumstances in which a person engaged in the business of providing transportation services is not readily available, an individual makes use of a vehicle for a purpose described in paragraph (2)(g), the individual or the individual’s legal representative shall be deemed to have paid to a person engaged in the business of providing transportation services, in respect of the operation of the vehicle, such amount as is reasonable in the circumstances.