31 May 2005 Internal T.I. 2005-0131681I7 - Medical Expenses of Dependents

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: Whether medical expenses of dependents may be claimed by more than one person.

Position: Generally yes. Question of Fact.

Reasons: A person may be dependent on more than one person for support.

		May 31, 2005

	Doris Atkinson	HEADQUARTERS
	Client Services	Rob Ferrari
	Hamilton TSO	(613) 957-2138

		2005-013168 

Medical Expense Credit for Dependents
Subsection 118.2(1)

This is in reply to your e-mail of May 17, 2005 in respect of the above topic. You have asked for our assistance in the determination as to whether more than one individual, in the following two situations, may claim the medical expenses of a dependent person under subsection 118.2(1) of the Income Tax Act (the "Act").

Situation 1:

Can the parents of a dependent child, who has attained the age of 18, allocate a portion of the dependent child's total medical expenses between themselves?

Scenario 2:

Can the children each claim a portion of a parent's nursing home costs as a medical expense?

Our Comments

For a person to be considered a dependant under subsection 118.2(1), pursuant to subsection 118(6) of the Act, the person need only be "dependent upon the individual for support". As stated in the CRA's Interpretation document number 2002-0173045, dated March 21, 2003, it is possible for someone to be dependent on more than one person. Since the wording of subsection 118.2(1) of the Act refers to an "individual's medical expenses in respect of a dependent individual", it is also possible that more than one individual may have paid or incurred medical expenses in respect of a dependent individual. Accordingly, in certain circumstances, it is possible more than one person may claim a portion of an allowable credit in those cases where the person in respect of whom the credit arose was in fact dependent upon more than one person for support.

In situation 1 described above, you have asked whether the parents may each claim a portion of the dependent's total medical expense. Paragraph 15 of Interpretation Bulletin IT-519R2 - Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, states "a receipt in the name of either spouse is considered acceptable for a medical expense of either, and the amount of that expense may be used by either, as agreed between them." Accordingly, in situations in which a child was in fact dependent on the parents for support, the parents may allocate their medical expenses of the dependent child as agreed between themselves.

In situation 2 described above, you have asked whether the children may each claim a portion of their parent's nursing home costs as a medical expense under subsection 118.2(1) of the Act. As previously outlined, a person may be dependent upon more than one individual for support in a taxation year and it would be a question of fact as to whether the parent was dependent upon each of the children for support. However, if the parent was dependent on support from each of the children, it would be our view that each child could include the portion of permissible costs in respect of the nursing home as a medical expense, to the extent such medical expenses were paid or deemed to be paid by each child, the child's spouse or the child's common-law partner.

We hope the above comments will be of assistance to you.

Phil Jolie
A/Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Planning Branch