This guide was compiled by Graeme Treeby of The “Special Needs” Planning Group. It is intended for free distribution to organizations serving the Special Needs Community, clients and friends of The “Special Needs” Planning Group (www.specialneedsplanning.ca) and anyone else who may be interested. It is not to be taken as Accounting or Tax advice but rather, as a resource to provide a starting point for your journey through the maze that is Income Tax Preparation and Planning for people with a disability and their families. Graeme Treeby can be reached at 905 640-8285 or firstname.lastname@example.org .
What’s New for 2016?
Once again this year, Canada Revenue Agency has announced a few changes that may affect the Income Taxes of people with disabilities and their families. They are:
A. Home Accessibility Tax Credit: A person with a disability or a supporting person may be eligible to claim up to $10,000 in renovation expenses incurred to allow the individual to gain access or to be mobile or functional within the dwelling or to reduce the risk of harm within the dwelling or in gaining access to the dwelling.
B. Children’s Fitness Amount: The amount of these credits is reduced this year for non-disabled children from $1000 to $500 but the additional amount for disabled children remains at $500. This credit will be cancelled for the 2017 Tax Year.
C. Children’s Arts Amount: The amount of this credit is reduced to $250 per child of the fees paid in 2016 your child in an artistic, cultural, recreational or developmental activity. If your child qualifies for the Disability Tax Credit, was under 18 years of age at the beginning of the year and if you paid at least $100, you can still claim $500 for 2016. This credit too will be cancelled for the 2017 Tax Year.
D. Age 17 Tax Returns: While not new, it is important to remember to file income tax returns for people receiving RDSP Grants and Bonds. The income amount switches from the parents income to the person with the disability’s income at the beginning of the year that he or she turns age 19. The income amount used for these calculations is the amount reported to CRA 2 years prior to the current year. Therefore it is important that we submit an Income Tax Return for the year in which the person turns age 17 and every year thereafter, even if he or she has earned no income in those years.
Once again, it is time for us to prepare our annual income tax returns. Normally, Canadian Tax Returns must be filed by April 30 in order to avoid late filing penalties. However, since April 30, 2017, is a Sunday, your return will be considered filed on time if is received on or it is postmarked on or before May 1, 2017. In addition, 2016 contributions to our RRSP’s can be made up until February 28, 2017.
The Income Tax Act allows us to take advantage of a variety of different credits and deductions that can minimize the amount of tax that we have to pay. Families with members with disabilities have a number of benefits that can be taken advantage of if they are aware of their existence.
The purpose of this guide is three fold:
1. To introduce you to the a) The Disability Amount, b) The Caregiver Amount and
c) The T2201 Disability Tax Credit Certificate used to secure them.
2. To share a FREE Re-File Process to Get Back Taxes That Should Never Have Paid.
3. To highlight many of the Tax Deductions, Credits and Benefits available to people with disabilities and their families.
a) The Disability Amount (Disability Tax Credit)
Perhaps one of the most valuable tax credit available to people with disabilities and their families is the Disability Amount. This credit is most often called the Disability Tax Credit (DTC). It is a non-refundable tax credit which can reduce the amount of tax that a person with a disability has to pay. If the DTC is not required by the person with a disability to reduce their taxable income to zero, then it may be transferred in whole or in part to a family member who supplied some or all of the basic necessities of life such as food, shelter and clothing to the person. Even if the person with the disability is not living with you, you may still be able to claim the DTC if the person depends on you for regular and consistent support for one or more of the basic necessities of life such as food, shelter or clothing. You may be asked to provide receipts or other documents to support this claim.
In the 2016 Taxation Year, the Disability Amount for a person who was 18 years of age or older is $8,001.00. If the person with the disability was under age 18 then there is also a Disability Tax Credit Supplement of $4,667.00 that is added to the disability amount. Both of these amounts can be transferred to a supporting family member if necessary. It should be noted that the supplement can be reduced in 2016 if someone claimed Child Care Expenses or Attendant Care expenses as a Medical Expense. Details of the Disability Amount can be found on Canada Revenue Agency’s web site by following the link at:
b) The Caregiver Amount (Caregiver Tax Credit)
Another tax credit available to families of adults with disabilities is the Caregiver Amount or Caregiver Tax Credit. If, at any time in the year, you maintained a dwelling where you and a dependant lived, you may be able to claim this amount. The caregiver tax credit is the same dollar amount as the Disability Tax Credit Supplement at $4667.00 for the 2016 taxation year. The credit can replace the Disability Tax Credit Supplement which ends at age 18. (the Disability Tax Credit itself continues after age 18). The dependant must be 18 years or older when they lived with you and must be dependent on you due to a mental or physical infirmity. Also, the dependent’s net income (line 236) cannot exceed $20,607 in 2016 or $22,728 if the dependant is eligible for the Family Caregiver amount. The Family Caregiver Tax Credit can increase this amount by $2121.00 for qualified people. More information on the Caregiver Tax Credit can be found on Canada Revenue Agency’s web site by following the link at:
c) T2201 Disability Tax Credit Certificate
In order to qualify for the Disability Tax Credit, information relating to the disability must be reviewed by Canada Revenue Agency. This information is collected on form T2201, “Disability Tax Credit Certificate” which is submitted to CRA. A new form has been released by CRA which is only 6 pages in length instead of the old forms’ 12 pages. The new form can be obtained on line at http://www.cra-arc.gc.ca/E/pbg/tf/t2201/ .
An interesting feature of the new T2201 form is found in Section 3. When you are applying for the DTC for yourself or for your dependent child with a disability under age 18, you can tick the box on the form and have CRA adjust your tax returns for prior years. There is no longer any need to send a T1-ADJ form to have this done. However, in other circumstances you will still have to send the T1-ADJ or a letter requesting an adjustment of prior years’ returns. Those circumstances are:
• The dependant is 18 years of age or older
• You are claiming for your spouse or common law partner
• The Disability Amount is being divided between 2 or more supporting persons
• Other changes not mentioned above
If a person needs assistance in filling out the form and if they wish to appoint another individual or organization as their Representative for income tax matters, they must complete CRA’s form T1013, “Authorizing or Cancelling a Representative”. This form can be found on the web at http://www.cra-arc.gc.ca/E/pbg/tf/t1013/ The completed form will allow the named representative to have access to your records with CRA and to act on your behalf with respect to issues surrounding your tax matters.
A person may be eligible for the disability amount if a qualified practitioner certifies on Form T2201 Disability Tax Credit Certificate, that you have a prolonged impairment, and that the effects of the impairment are such that one of the following applies:
• You are blind, even with the use of corrective lenses or medication.
• You are markedly restricted in any one of the following basic activities of daily living:
o elimination (bowel or bladder functions);
o dressing; or
o performing the mental functions necessary for everyday life.
• You need, and must dedicate a certain amount of time specifically for, life-sustaining therapy to support a vital function.
• Cumulative Effect of Significant Restrictions – if you do not quite meet the criteria for blind or markedly restricted, but the following conditions apply:
o because of your impairment, you are significantly restricted in two or more basic activities of daily living, or you are significantly restricted in vision and at least one of the basic activities of daily living, even with appropriate therapy, medication, and devices;
o these significant restrictions exist together, all or substantially all the time (at least 90% of the time); and
o the cumulative effect of these significant restrictions is equivalent to being markedly restricted in a single basic activity of daily living.
Your doctor will complete the form with his or her impression of the impact your disability has on you in the various categories. The doctor should also complete the full details of the effects of the impairment on the last page of the form. The more information provided the easier it will be to approve the application. It is also important to stress to the doctor that the “onset of impairment” date be listed as the very first date upon which the impairment began. This is important when any back-filing actions are undertaken. If you have been approved for a period of time for which you have not claimed the credit, you may re-file for those years and receive a refund for taxes that you have previously paid for as many as 10 years.
Once the form is completed, you should sign it, and forward it to Canada Revenue Agency. These forms can be reviewed at any time of the year so you needn’t wait until tax time for submission. In fact, it often takes several months for Canada Revenue Agency to approve the form and so it would be prudent to send it in as soon as it has been completed by your doctor.
It should also be noted that the Disability Tax Credit Certificate is a requirement for participation in the Registered Disability Savings Plan. Qualifying for the DTC also attracts enhancements to the Children’s Fitness Tax Credit and the Children’s Arts Tax credit which will be outlined later in this article. Preferential tax treatment on income earned in Testamentary Henson Trusts also depends on qualifying for the DTC. Therefore, even if a person cannot use the Disability Tax Credit (due to income levels) there is still significant benefit in obtaining it.
It is quite possible that you may not be keeping as much of your hard earned money as you are entitled to keep. Many people in the special needs community are giving the Government thousands upon thousands of dollars in tax revenue that should stay in our community. But this doesn’t have to continue. By following a few simple steps, people with disabilities and their caregivers can claim the DTC from this year onward and for up to 10 years in the past where they have not claimed the credit. In addition, caregivers can also claim back as far as 2006 for the Caregiver Tax Credit provided that your dependent is over age 18 in each of the years being claimed. These credits could result in you receiving tax refunds of $10,000, $18,000 and even much more when combined with the other tax credits or deductions that you may have missed over the years and which are still available to you.
Once the DTC has been approved by Canada Revenue Agency, a number of things can happen. If you were able to take advantage of the new T2201 form section where you can tick the box in Section 3, CRA will re-evaluate your returns from prior years and if appropriate, they will issue a refund to you. If you are not able to take advantage of Section 3 then you can commence the back filing process. The back-filing process is very simple; so simple in fact that virtually anyone can do it. Therefore, why pay any of the many tax re-file firms that have sprung up in our community in the last few years anywhere from 15% to 35% of the refund for a task that can be completed by you in about 10 minutes? The Federal Government has some serious concerns about the amount that these firms are charging and so has launched an enquiry process with a view toward limiting the amount they are allowed to charge. Some of those firms are not even represented by trained Accountants.
The choice is yours. If you are not comfortable with completing and submitting forms, then by all means talk to an Accountant and have him or her re-file for you for a couple of hundred dollars (ask your accountant for rates). If you are not comfortable using an Accountant, then by all means talk to one of the re-file firms and have them re-file for you for a several thousand dollars. However if you are interested in saving your hard earned money and are willing to do a little work on your own, then simply follow the step by step instructions that follow to re-file for previously paid taxes.
As a general rule of thumb, when an ODSP recipient lives with his or her family and receives the standard boarder rate of $863 per month, a family member who provides support to the ODSP recipient ordinarily would be able to get a transfer of the full Disability Tax Credit. If the ODSP recipient earns other income, there are some restrictions which must be taken into account. Please refer to Canada Revenue Agency tax guides if this is your situation. In addition, if the family member provides some or all of the person’s food, shelter or clothing, the credit may be able to be transferred even if the person does not live with the family member.
There are two methods that can be employed to re-filing your tax returns for prior years. The first and easiest method is to simply mail a letter to Canada Revenue Agency outlining the details of your claim and asking that they review your file for the past 10 years. This is the easiest method but our understanding is that it takes a little bit longer for the refund to arrive. If you are not in a particular hurry, this may be your best choice.
The alternative method is to acquire the Canada Revenue Agency T1 Adjustment Request form. A fillable form can be found on the web at:
It is a one page form and comes complete with written instructions. A separate form should be submitted for each year that you wish to have adjusted. On line, you can fill in the information with respect to your Identification, Authorizations, and Adjustment Details.
If you, as a person with a disability are applying for an adjustment to the Disability Amount for yourself, the line number the Adjustment Details section is 316 and the name of the line is “Disability Amount”. If you are applying for an adjustment for an amount transferred from a dependant, the line number is 318 and it is called “Disability Amount Transferred From a Dependant”. It would include both the Disability Tax Credit plus the Supplement Amount if your son or daughter is under the age of 18. The caregiver claim may be reduced if a claim has also been made for child care, attendant care or certain related medical expenses. If you are a caregiver who qualifies under the Caregiver Tax Credit and who is back-filing for the Caregiver Tax Credit, the line number is 315 and the name of the line is “Caregiver Amount”. The amount to be printed in the Revised Amount column can be taken from the following chart.
Line Numbers and Maximum Claim Amounts:
Taxation Year DTC Amt. Self DTC From Dependent DTC Supplement Caregiver Tax Credit
(Line 316) (Line 318) (Line 318) (Line 315)
2016 $8001.00 $8001.00 $4667.00 $4667.00
2015 $7899.00 $7899.00 $4607.00 $4608.00
2014 $7766.00 $7766.00 $4530.00 $4530.00
2013 $7697.00 $7697.00 $4490.00 $4490.00
2012 $7546.00 $7546.00 $4402.00 $4402.00
2011 $7341.00 $7341.00 $4282.00 $4282.00
2010 $7239.00 $7239.00 $4223.00 $4223.00
2009 $7196.00 $7196.00 $4198.00 $4198.00
2008 $7021.00 $7021.00 $4095.00 $4095.00
2007 $6890.00 $6890.00 $4019.00 $4019.00
2006 $6741.00 $6741.00 $3933.00 $3933.00
Once the forms have been completed, they should be signed and mailed to your taxation office as indicated below. Be sure to keep copies of all forms that are submitted to Canada Revenue Agency and remember that a separate form must be submitted for each year that you wish to have adjusted. It will take several weeks or months but eventually you should receive your refund.
Canada Revenue Agency Office Locations:
If your tax services office is located in: Send your correspondence to:
Alberta, British Columbia, London, Manitoba, Northwest Territories, Regina, Saskatoon, Thunder Bay, Windsor or Yukon Winnipeg Tax Centre
66 Stapon Road
Winnipeg MB R3C 3M2
Barrie, Kingston, New Brunswick, Newfoundland and Labrador, Nova Scotia, Peterborough, St. Catharines, Sudbury (the area of Sudbury/Nickel Belt only), Toronto Centre, Toronto East, Toronto North, or Toronto West
Sudbury Tax Centre
P.O. Box 20000, Station A
Sudbury ON P3A 5C1
Laval, Montréal, Nunavut, Ottawa, Rouyn-Noranda, Sherbrooke, or Sudbury (other than the Sudbury/Nickel Belt area) Shawinigan-Sud Tax Centre
4695 Shawinigan-Sud Boulevard
Shawinigan QC G9P 5H9
Chicoutimi, Montérégie Rive Sud, Outaouais, Québec, Rimouski, or Trois-Rivières Jonquière Tax Centre
2251 René-Lévesque Boulevard
Jonquière QC G7S 5J2
Belleville, Hamilton, Kitchener/Waterloo, or Prince Edward Island Prince Edward Island Tax Centre
275 Pope Road
Summerside PE C1N 6A2
International and Ottawa Tax Services Office (deemed residents, non residents, and new or returning residents of Canada) International and Ottawa Tax Services Office
P.O. Box 9769, Station T
Ottawa ON K1G 3Y4
The next section of this article relates to the various deductions, credits and benefits that are available to people with disabilities and their caregivers. It is intended that we will list the categories that are available to people with disabilities themselves and categories that are available to the caregivers of people with disabilities. We suggest that you scan each of the descriptions and if it sounds like that particular deduction may apply to you and your situation, then you can investigate further into the details of the rules and regulations.
Deductions, Credits and Benefits Available to People With Disabilities Themselves:
• Home Accessibility Tax Credit: For the tax year 2016 and following tax years, people with disabilities who qualify for the Disability Tax Credit as well as their supporting family members who are qualified to claim the disability amount for the individual may be able to claim a non-refundable tax credit for up to $10,000 per year for renovations made to a residence. The renovations must be made to allow the person to gain access to the home or to be mobile or functional within the home; or to reduce the risk of harm within the home or in accessing the home. Further details are available at: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns36...
• CRA Auto-fill Feature: Canada Revenue Agency has created a service for tax returns that will assist all taxpayers including those with disabilities. This new service will automatically fill in certain parts of the income tax return with information that CRA already has on file. CRA says that it is able to populate a taxpayer’s return with things such as T3, T4 and T5 slips, RRSP information, Home Buyers’ Plans, Capital Gains and Losses to name a few. A full list can be found at http://www.cra-arc.gc.ca/auto-fill/ and can be used when a return is filed online with certified tax preparation software.
• Disability Supports Deduction: If you are a person with a disability you may be able to deduct disability supports expenses you incurred in the year to work, go to school, or to do research for which you were paid. The Disability Supports are actually claimed as medical expenses on your Income Tax Return and some are:
• Attendant care services
• Bliss symbol boards
• Braille note-taker devices
• Braille printers, synthetic speech systems, large print-on-screen devices
• Deaf-blind intervening services
• Devices or software
• Electronic speech synthesizers
• Job coaching services
• Note-taking services
• Optical scanners
• Page turner devices
• Reading services
• Real-time captioning or sign-language interpretation services
• Talking textbooks
• Tutoring services
• Voice recognition software
• Other deductions: Misc amounts found at http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns20... relating to misc. items
• Disability Amount: As previously mentioned, this is a non-refundable disability tax credit which can reduce the amount of tax that a person with a disability has to pay.
• Tuition Fees: Some tuition fees can be claimed for courses at the post-secondary school level are taken in the taxation year.
• Education Amount: A person can claim a full-time education amount of $400 per month for each month in the year that your were enrolled in a qualifying program or $120 per month of part time enrollment. If you attended only part time due to an impairment in physical or mental functions you may be able to claim $400 per month.
• Text Book Amount: If you qualify for the Education Amount, you can also claim $65 for each month you qualify for the full-time education amount; and $20 for each month you qualify for the part-time education amount.
• Spouse or Common-Law Partner Amount: If a person supported a low income spouse or common law partner, a deduction is available.
• Working Income Tax Benefit: This benefit may be available to individuals and families with low income. In 2016 it includes a basic claim plus a supplemental benefit for individuals who qualify for the Disability Tax Credit. You may also be able to apply for 2017 advance payments. These amounts may be adjusted depending on where you live in Canada and on your family income levels. Further information can be found at:
• Medical Expenses: See the Medical Expenses section to follow.
• Home buyers’ amount: Credit of $5000 applies. A person qualifying for the DTC does not have to purchase a first home to qualify if the new home is more accessible for the person with the disability.
• Refundable medical expense supplement: If you are working, have low income and high medical expenses you may be able to claim a maximum amount of $1187 in 2016.
Deductions, Credits and Benefits Available to Caregivers of a Person With a Disability:
• Family Caregiver Amount: This amount is designed to provide tax support for caregivers of infirm dependent family members. Infirm dependents now include spouses, common-law partners and minor children. The family caregiver amount (FCA) may increase the maximum for one or more of the following non-refundable tax credits by $2,121 for each of your dependants who have an impairment in physical or mental functions:
• spouse or common-law partner amount (line 303);
• amount for an eligible dependant (line 305);
• amount for children born in 1998 or later (line 367); and
• caregiver amount (line 315).
• Child Disability Benefit: Families with children under age 18 who qualify for the disability amount may be eligible for the Child Disability Benefit. It is income tested based on family income and the maximum available in the 2016 tax year is $2730. Therefore, the benefit provides up to $227.50 per eligible child.
• Children’s Fitness Amount: The amount that you can claim if you were a resident of Ontario and you paid fees that relate to the cost of registering your or your spouse's or common-law partner's child in a qualifying children's activity program in 2016 has been reduced to $500. For each eligible child, you can claim the lesser of the $500 and the amount of eligible expenses paid for qualifying programs for that child in 2016. If the child qualifies for the disability amount and is under 18 years of age at the beginning of the year, and at least $100 was paid for registration or membership fees for qualifying programs for that child in 2016, you can still claim an additional $500 for that child.
• Children’s Arts Amount: You can claim to a maximum of $250 per child the fees paid in 2016 relating to the cost of registration or membership of your or your spouse's or common-law partner's child in a prescribed program of artistic, cultural, recreational, or developmental activity. If the child qualifies for the disability amount and is under 18 years of age at the beginning of the year, an additional amount of $500 can be claimed as long as a minimum of $100 is paid on registration or membership fees for a prescribed program.
• Child Care Expenses: If you have paid someone to look after your child who qualifies for the Disability Amount, you may be able to deduct up to $11,474 for child care expenses.
• Amount for Eligible Dependant: If you did not have a spouse or common- law partner and you supported a dependant with whom you lived in a home you maintained you may be able to claim this amount.
• Amount for Infirm Dependants Age 18 and Over: You may be able to claim an amount for a dependent child or grandchild if that child was mentally or physically infirm.
• Caregiver Amount: As previously stated, if, at any time in the year, you maintained a dwelling where you and an adult dependant lived, you may be able to claim this amount.
• Disability Amount Transferred From a Dependant: If the DTC is not required by the person with a disability to reduce their taxable income to zero, then it may be transferred in whole or in part to a family member who supplied some or all of the basic necessities of life such as food, shelter and clothing to the person. The person with the disability does not necessarily have to live with the family member in order to make the transfer.
• Tuition, Education and Textbook Amounts Transferred from a Child: If the person with a disability does not require these amounts, a supporting person may be able to claim all or part of the unused amount.
• Adoption Expenses: You can claim an amount for eligible adoption expenses related to the completed adoption of a child who is under 18 years of age that were incurred during the adoption period. The maximum claim for each child is $15,453 for the 2016 taxation year.
This is a major section of potential deductions that may be available to people with disabilities themselves or to caregivers of people with disabilities. You can claim eligible medical expenses paid in any 12-month period ending in 2016 and not claimed by you or anyone else in 2015. If you are claiming for yourself, your spouse or common law partner or for a child under the age of 18, you claim the expenses on line 330 of your return. The expenses you claim for all other dependants is done on line 331 of your return. The amount claimed for a person with a disability is reduced by formula based on his or her income. There is no maximum amount that can be claimed in any given year.
You do not have to send any supporting documents relating to the Medical Expense claims to Canada Revenue Agency when you submit your return. This applies to income tax returns submitted electronically or those submitted on paper. You still need to keep them in case CRA asks to see them at a later date. Those receipts must show the name of the company or individual to whom the expense was paid. Receipts for attendant care or therapy paid to an individual should also show the individual's social insurance number.
If you are submitting a claim for medical expenses, speak with your Pharmacy and ask for a print out of your prescriptions for 2016. All Pharmacists in Ontario and some other provinces are required to provide you with a listing free of charge. This can be useful in preparing your returns.
The following is a partial listing of eligible medical expenses. It is not exhaustive. Once again, we suggest that you scan each of the descriptions and if it sounds like that particular deduction may apply to you and your situation, then you can investigate further into the details of the rules and regulations.
• Acoustic coupler - prescription required.
• Air conditioner - 50% of the amount paid up to $1,000 for a patient with a severe chronic ailment, disease, or disorder - prescription required.
• Air filter, cleaner, or purifier - paid for someone to cope with or overcome a severe chronic respiratory ailment or severe chronic immune system disorder - prescription required.
• Altered auditory feedback devices – for treatment of a speck disorder – prescription required.
• Ambulance service to or from a public or licensed private hospital.
• Animals (Service) - the cost of a specially trained dog or other animal for use by someone who is blind, profoundly deaf, or has a severe and prolonged physical impairment that markedly restricts the use of their arms or legs, or a person who is severely affected by autism or epilepsy or a person who has severe diabetes (for expenses incurred after 2013).
In addition to the cost of the animal, the care and maintenance (including food and veterinarian care) are eligible expenses
Reasonable travel expenses for the person to attend a school, institution, or other place that trains him or her in handling such an animal (including reasonable board and lodging for full-time attendance at the school) are eligible expenses. The training of such animals has to be one of the main purposes of the person or organization that provides the animal.
• Assisted breathing devices that supply air to the lungs under pressure, such as a continuous positive airway pressure (CPAP) machine or mechanical ventilator.
• Artificial eye or limb
• Attendant care expenses
• Audible signal - prescription required.
• Baby's breathing monitor designed to be attached to an infant to sound an alarm if the infant stops breathing.
• Bathroom aids to help someone get in or out of a bathtub or shower or to get on or off a toilet - prescription required.
• Bliss symbol boards
• Blood coagulation monitors – the amount paid for the purchase including disposable peripherals such as pricking devices, lancets, and test strips for a person who requires anti-coagulation therapy – prescription required.
• Bone conduction receiver
• Bone marrow transplant
• Brace for a limb
• Braille note-takers -prescription required.
• Braille printers, Synthetic Speech Systems, Large Print-on-Screen Devices – designed only to assist a person who is blind to use a computer – prescription required.
• Breast prosthesis - prescription required.
• Cancer treatment
• Catheters, catheter trays, tubing, or other products required for incontinence caused by illness, injury or affliction.
• Certificates - the amount paid to a medical practitioner for completing and providing additional information in regard to Form T2201 and other certificates.
• Chair - power-operated guided chair to be used in a stairway, including installation - prescription required.
• Cochlear implant
• Computer peripherals designed exclusively to be used by someone who is blind - prescription required.
• Cosmetic surgery – purely cosmetic procedures are eligible if incurred before March 5, 2010. After 2010, only for procedures for medical or reconstructive purposes.
• Deaf-blind intervening services
• Dentures and dental implants
• Devices or software designed to be used by a blind person or with a person with a severe learning disability to enable them to read print – prescription required.
• Diapers or disposable briefs
• Driveway access
• Drugs and medical devices – purchased under Health Canada’s Special Access Program.
• Elastic support hose - prescription required.
• Electronic bone healing device - prescription required.
• Electronic speech synthesizers - prescription required.
• Electrotherapy Devices – for the treatment of a medical condition or a severe mobility impairment – prescription required.
• Environment control system (computerized or electronic) - prescription required.
• Extremity pump - prescription required.
• Furnace - prescription required.
• Gluten-free products - incremental cost
• Group home
• Hearing aids
• Heart monitor - prescription required.
• Hospital bed - prescription required.
• Hospital services – public or private, that are licensed as hospitals by the province, territory or jurisdiction they are located in.
• Ileostomy and colostomy pads including pouches and adhesives.
• Infusion pump including disposable peripherals - prescription required.
• Insulin or substitutes - prescription required.
• Kidney machine
• Laboratory services - prescription required.
• Large-print on-screen device - prescription required.
• Laryngeal speaking aids
• Laser eye surgery
• Lift or transportation equipment - prescription required.
• Liver extract injections - prescription required.
• Medical marijuana or marijuana seeds - for medical purposes.
• Medical Practitioner
• Medical services outside Canada
• Moving expenses - to housing that is more accessible to the person to a maximum of $2769 in Ontario in 2016
• Needles and syringes - prescription required.
• Note-taking services
• Nursing home
• Optical scanner - prescription required.
• Organ transplant
• Orthodontic work
• Orthopaedic shoes, boots, and inserts - prescription required.
• Osteogenesis stimulator (inductive coupling) - prescription required.
• Oxygen concentrator
• Oxygen and oxygen tent or other equipment necessary to administer oxygen – prescription required.
• Pacemakers - prescription required.
• Personalized therapy plan – the salaries and wages incurred after 2013 for designing a personalized therapy plan are eligible medical expenses if certain conditions are met.
• Page-turning - prescription required.
• Phototherapy equipment
• Premiums paid to private health services plans
• Pre-natal and post-natal treatment - prescription required.
• Prescription drugs and medications
• Pressure pulse therapy devices - prescription required.
• Reading services
• Real-time captioning
• Rehabilitative therapy
• Renovating costs
• Respite Care services
• School for people with an impairment in physical or mental
• Service Animals – (see Animals section)
• Sign-language interpretation services
• Spinal brace
• Standing devices - prescription required.
• Talking textbooks - prescription required.
• Teletypewriters - prescription required.
• Television closed caption decoders - prescription required.
• Tests - prescription required.
• Travel expenses – in excess of 40 km and for medical services not available near your home.
• Treatment centre for addictions
• Truss for hernia
• Tutoring services
• Vaccines - prescription required.
• Van - 20% of the amount paid for a van that has been adapted up to $6922 in Ontario for 2016.
• Vehicle modification to permit someone confined to a wheelchair to gain independent access to and drive the vehicle - prescription required.
• Vision devices – eyeglasses etc – prescription required.
• Visual or vibratory signalling device - prescription required.
• Vitamin B12 injections - prescription required.
• Voice recognition software
• Volume control feature - prescription required.
• Walking Aids - prescription required.
• Water filter, cleaner, or purifier - prescription required.
• Wheelchairs and wheelchair carriers
• Whirlpool bath treatments
• Wigs - prescription required
If you think that any of these items may apply to your particular situation, please follow the following link for more details. http://www.cra-arc.gc.ca/E/pub/tg/rc4065/rc4065-16e.pdf
Non-eligible Medical Expenses Include the Following:
• athletic or fitness club fees;
• birth control devices (non-prescription);
• blood pressure monitors;
• cosmetic surgery - expenses for purely cosmetic procedures including any related services and other expenses such as travel, incurred after March 4, 2010, cannot be claimed as medical expenses. Both surgical and non-surgical procedures purely aimed at enhancing one's appearance are not eligible. These non-eligible expenses include the following:
o hair replacement procedures;
o filler injections (for removal of wrinkles);
o teeth whitening.
An expense, including those identified above, may qualify as a medical expense if it is necessary for medical or reconstructive purposes, such as surgery to address a deformity related to a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.
• diaper services;
• health plan premiums paid by an employer and not included in your income;
• health programs;
• organic food;
• over-the-counter medications, vitamins, and supplements, even if prescribed by a medical practitioner;
• personal response systems such as Lifeline and Health Line Services;
• the following provincial and territorial plans:
o Alberta Health Care Insurance Plan
o Manitoba Health Plan
o Medical Services Plan of British Columbia
o New Brunswick Medicare Division of Provincial Department of Health
o Newfoundland Medical Care Plan
o Northwest Territories Health Insurance Services Agency of Territorial Government
o Nova Scotia Medical Services Insurance
o Ontario Health Insurance Plan
o Prince Edward Island Health Services Payment Plan
o Quebec Health Insurance Board (including payments made to the Health Services Fund)
o Saskatchewan Medical Care Insurance Plan
o Yukon Territorial Insurance Commission; or
• Travel expenses for which you can get reimbursed.
Refundable Medical Expense Supplement
• This refundable tax credit is available to working individuals with low incomes and high medical expenses. You may be able to claim this credit if all the following apply:
o You made a claim for medical expenses on line 332 of Schedule 1 or for the disability supports deduction on line 215 of your income tax and benefit return.
o You were resident in Canada throughout 2016.
o You were 18 years of age or older at the end of 2016.
In conclusion, we trust that this guide has been useful to you. Again, remember that we are not providing Accounting or Tax Planning or preparation advice. If you have any questions regarding your Income Tax Returns, please contact a Tax Accountant or Canada Revenue Agency for assistance.
Disability Related Information Links:
The “Special Needs” Planning Group www.specialneedsplanning.ca
Canada Revenue Agency Links:
Disability Amount http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm- tx/rtrn/cmpltng/ddctns/lns300-350/316-eng.html
Caregiver Tax Credit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns30...
T2201 Disability Tax Credit Certificate http://www.cra-arc.gc.ca/E/pbg/tf/t2201/
Prior Years Re-File Form http://www.cra-arc.gc.ca/E/pbg/tf/t1-adj/README.html
Allowable Medical Expense Listing http://www.cra-arc.gc.ca/E/pub/tg/rc4065/rc4065-16e.pdf
Additional Disability Deductions & Credits http://www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-e.html
Working Income Tax Benefit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-