Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: The Cost of Travel as a Medical Expense
Position: See below.
Reasons: See below.
2010 Canadian Tax Foundation Conference
CRA Round Table
November 28, 2010
Question 23 - The Cost of Travel as a Medical Expense
Please clarify the CRA's interpretation regarding the cost of travel as a medical expense for the purposes of the medical expense tax credit. If an individual taxpayer (and an attendant) is required to travel a minimum of 80 kilometres (as required under paragraph 118.2(2)(h)) to obtain medical treatment, will travel costs (such as parking, meals, and hotel accommodation) incurred by the taxpayer (and the attendant) during the medical treatment qualify as eligible medical expenses of the individual?
Response 23
Section 118.2 provides rules for determining the amount that may be claimed as a tax credit in respect of medical expenses.
Pursuant to paragraph 118.2(2)(h), if an individual travels more than 80 kilometres (one way) to obtain medical services, he or she can claim reasonable travel expenses as medical expenses if
- substantially equivalent medical services were not available near the individual's home;
- the individual took a reasonably direct travelling route; and
- it is reasonable, having regard to the circumstances, for the individual to have travelled to that place for medical services.
Travel expenses may include expenses for meals, accommodations, and public transportation or, where public transportation is not readily available, vehicle expenses. An individual can choose the detailed method or the simplified method for calculating vehicle and meal expenses.
If a medical practitioner certifies that an individual is incapable of travelling alone to obtain medical services, the individual can also claim the travel expenses of an accompanying attendant. Note that for all expenses, an individual can claim only the part of the expense for which he or she has not been and will not be reimbursed. However, an individual can claim all of the expense if the reimbursement is included in the individual's income (such as a benefit shown on a T4 "Statement of Remuneration Paid" slip) and the individual did not deduct the reimbursement anywhere else on his or her return.
1. For more information, see Canada Revenue Agency, "Meal and Vehicle Rates Used To Calculate Travel Expenses for 2010" (www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns248-260/255/rts-eng.html).
Gwen Moore
2013-050730
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