17 September 2003 External T.I. 2003-0029555 - MEDICAL EXPENSE-DENTAL SERVICES

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: Does the cost of veneers qualify as a medical expense eligible for the medical expense tax credit?

Position: Yes - the cost of dental services performed by a dentist qualifies for the credit.

Reasons: Paragraph 118.2(2)(a) recognizes the cost of dental services performed by a dentist.

Bob Naufal, CMA
XXXXXXXXXX (613) 957-2744
2003-002955
September 17, 2003

Dear XXXXXXXXXX,

Re: Medical Expense Tax Credit

We are writing in response to your letter dated July 14, 2003 wherein you asked us if the cost of veneers for your teeth qualify for the medical expense tax credit. In your letter, you stated that, instead of getting braces to fix a problem with your teeth, you opted to get veneers. The application of the veneers was performed by your dentist.

Our Comments

Section 118.2 of the Income Tax Act provides rules for determining the amount that may be claimed, as a tax credit, in respect of medical expenses. The credit applies to qualifying medical expenses, in excess of defined limits, incurred in any 12-month period ending in the taxation year.

Qualifying medical expenses include an amount paid to a dentist in respect of dental services. For this purpose, a dentist is a person who is authorized to practise under the laws of the jurisdiction where the services are provided.

In our view, the work performed by your dentist that relates to the application of the veneers is a dental service since it relates to the treatment of your teeth. Accordingly, the fees charged by your dentist would be a medical expense eligible for the medical expense tax credit. In addition, we would consider any lab fees incurred by you for the creation of the veneers to be an integral part of the dental service and, therefore, eligible for the medical expense tax credit.

To claim the medical expense tax credit in respect of your veneers, please complete Form T1-ADJ, T1 Adjustment Request and send the form with the original receipts to your local tax office.

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R5, the above comments do not constitute an income tax ruling and accordingly are not binding on the CCRA. Our practice is to make this disclaimer in all instances in which we provide an opinion.

We trust our comments will be of some assistance.

Yours truly,

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

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