3 July 2003 External T.I. 2003-0025555 - MEDICAL EXPENSES - ATTENDANT CARE

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Do home care expenses of seniors qualify for the medical expense tax credit?

Position: Yes, if all of the requirements set out in paragraph 118.2(2)(b.1) are met.

Reasons: To qualify for the medical expense tax credit, an expense must be described in subsection 118.2(2). The relevant provision in this case is paragraph 118.2(2)(b.1).

XXXXXXXXXX 2003-002555
Daryl Boychuk
613-957-2059
July 3, 2003

Dear XXXXXXXXXX:

Re: Medical Expense Tax Credit

We are writing in reply to your recent query regarding home care expenses and the medical expenses tax credit. It is our understanding that your client is a senior citizen who will pay for various home care services (other than personal care) such as meal preparation and laundry. These services were previously provided by the V.O.N. but are now provided separately by persons other than medical professionals. You have asked us if these expenses are eligible for the medical expense tax credit.

Our Comments

Subsection 118.2(2) of the Income Tax Act lists the medical expenses that qualify for the purpose of the medical expense tax credit. Under that provision, attendant care expenses may qualify for the medical expense tax credit if certain conditions are met. "Attendant care" is care provided by a person who performs those personal tasks that the individual with a disability is unable to do. Depending on the situation, such tasks could include meal preparation, housework, transportation, and personal services, such as banking and shopping. However, attendant care expenses would not normally include a payment to a person employed to do a specific task, such as a drycleaner.

In the circumstances described in your query, the attendant care expenses incurred by your client would qualify as medical expenses only if all of the following conditions are satisfied:

(a) the client is entitled to a credit under section 118.3 (disability tax credit);

(b) the amount paid is not claimed under section 63 (child care), section 64 (attendant care deduction to attend work or school) or another provision dealing with medical expenses;

(c) the attendant is not the client's spouse, common-law partner, or a person under 18 years of age; and

(d) the expense is proven by a receipt, issued by the attendant, that includes, where the attendant is an individual, his/her social insurance number.

Only those attendant care expenses that do not exceed $10,000 for the year ($20,000 where the client died in the year) qualify for the medical expense tax credit.

We also note that subsection 118.2(2) also treats certain full-time attendant care expenses as qualifying medical expenses. However, the situation involved in your query did not appear to involve full-time attendant care so we have not included a discussion on that topic. Further information on medical expenses, including full-time attendant care, may be found in Interpretation Bulletin IT-519R2. This Interpretation Bulletin is available on our website at www.ccra-adrc.gc.ca.

We trust that the foregoing adequately addresses your question.

Yours truly,

D. Boychuk, LL.B
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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