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Canadian Income Tax Credit

Posted: Fri Jul 30, 2010 9:52 am
by Blaze
Does anyone know if those of us who travel outside of Canada for treatment can claim it as a medical expense for an income tax credit?

A friend had out of country medical expenses for an emergency last year, which she claimed for a tax credit. However, because hers was an emergency an because it was a recognized treatment for something which would have been covered if it had occurred here, I wonder if Revenue Canada would treat that differently.

I think one Canadian said he was a tax preparer, but I don't recall who that was.

If we can claim it, that would help defray some of the costs we will absorb.

Posted: Fri Jul 30, 2010 10:49 am
by oreo
Tax preparer here.
Short answer - YES.

Long answer: The cost of medical treatment & associated costs (travel , accomodation etc.) are legitimate medical expenses provided that the medical services are provided by someone who qualifies as a medical practicioner in your province of residence.

There are new exception rules in the most recent tax changes but they seem to impact ellective cosmetic surgery which will no longer be claimable.

It is important to keep every receipt and supporting bits of documentation as you are likely to run up quite a large bill which may result in the CRA wanting to see proof of your claim.

Posted: Fri Jul 30, 2010 10:55 am
by scotland
Hi
You did not hear this from me.


Get a local service club with a charitable donation number to do a "fund raiser" for you, maybe make a donation yourself ?!! get tax receipt.
Welcome to the world of fundraising.
Scotland

Posted: Fri Jul 30, 2010 11:30 am
by Blaze
Thanks to both of you.

So, Oreo, if I travel to Albany, where I'm on Dr. Siskin's list, I could claim this as an income tax credit--including travel (?!?) even though the procedure is still considered experimental in Canada? The travel point raises another question? Can I include ccomodation costs for when I traveled to Barrie for my ultrasound? I know I can only claim medical costs when they are over 3% of my income, but these will far exceed that!

To the person who I didn't hear this from, you are creative!

Posted: Fri Jul 30, 2010 11:38 am
by newfie-girl
Oreo, I was wondering the same thing as Blaze, as I too am traveling to Albany, and you said "coverage within out own province/country. Tks for any clarification you can give on this :D

Posted: Fri Jul 30, 2010 12:49 pm
by Trine
scotland wrote:Hi
You did not hear this from me.


Get a local service club with a charitable donation number to do a "fund raiser" for you, maybe make a donation yourself ?!! get tax receipt.
Welcome to the world of fundraising.
Scotland
Can you give examples of some local service clubs? I'm in BC.

Short answer - YES.

Long answer: The cost of medical treatment & associated costs (travel , accomodation etc.) are legitimate medical expenses provided that the medical services are provided by someone who qualifies as a medical practicioner in your province of residence.
I saw a post by someone who said we need a letter from our doctor. Is this true?


Trine

Posted: Fri Jul 30, 2010 6:55 pm
by welshman
There's a Facebook page (CCSVI Cabo san lucas) where the advice they have received suggests that you can claim travel, food and lodging expense as well as medical costs: ensure you keep all receipts, and when making tax claim, you will require a letter from your Doctor stating that the treatment was not available to you in Canada.

Don't know what Can Rev will say or do, because as yet probably no one has tried making a claim !!!!!!

Posted: Fri Jul 30, 2010 7:52 pm
by joanp
what i would recommend is writing a detailed letter to Revenue Canada and ask them if what you want to claim will be allowed. They will send you their answer and you will then have their letter as your reference for your tax return and in the event that they query it later on.

Posted: Fri Jul 30, 2010 7:53 pm
by oreo
Expenses which may be claimed for tax purposes:

payments to a public or private licensed hospital, a medical practitioner, nurses;

laboratory, radiology & diagnostic services in diagnosis or treatment of disease;

cost of PUBLIC transportation to obtain medical treatment that is NOT available locally (at least 40 kilometers one way) or private tansportation if public transportation is not readily available;

reasonable travel expense (incl. accommodation & meals) for medical treatment not available locally (over 80 km one way).

The above is not an complete list but pretty much covers the liberation treatment situation. Yes, the trip to Barrie (or anywhere else in Canada) counts if it is over 40 km and it is the most practical location for you.

The one thing that gets a little tricky would be direct billing by a lab or x-ray TECHNICIAN. You can only include that item if you live in Alberta as that is the only province where that is a regulated profession under provincial law. Doesn't matter that the service was provided in Buffalo or Poland or elsewhere.

And just in case anyone is not aware, if your doctor gives you a 'prescription' for it you can also include in your medical claim up to $1,000.00 towards the purchase of either central or room air conditioners.

The CRA is not concerned with what is or is not covered by the public health system. The tax act provisions that this is based on actually pre-date the public health care system.

Anyone who does travel outside of the country for this treatment should keep every receipt & scrap of paper related to the trip and I strongly suggest you have your return done by a professional tax preparer for at least the year in question. Let them sort out what should/should not be included.

And yes, you may be asked to provide a letter from a doctor attesting that the treatment was not available to you locally.

Posted: Sat Jul 31, 2010 2:38 am
by Blaze
Thanks Oreo. That information is really helpful.