5 September 2012 External T.I. 2012-0457461E5 - medical expenses - travel

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 an individual can claim travel expenses as eligible medical expenses for purposes of the medical expense tax credit?

Position: Question of fact.

Reasons: Wording of paragraphs 118.2(2)(g) and (h) as long as the requirements of those provisions are met.

XXXXXXXXXX
R. Ferrari
2012-045746

September 05, 2012

Dear XXXXXXXXXX:

Re: Medical Expense Tax Credit – Medical Travel Expenses

This is in response to your email of July 30, 2012 inquiring about whether you can claim travel expenses incurred for medical reasons.

Your email indicates that your husband drove you and your XXXXXXXXXX month old infant XXXXXXXXXX over XXXXXXXXXX kilometres from your home to the hospital in another city where the infant had surgery. Including the pre-admission at the hospital, the child was in the hospital for XXXXXXXXXX days. Following the surgical procedure, you stayed with your child in the city for an additional XXXXXXXXXX days for a post-surgery follow-up procedure before returning directly home.

You ask whether the travel expenses incurred for both yourself and your husband for the entire time you were away from your home are qualified medical expenses for the purposes of the medical expense tax credit (“METC”) under the Income Tax Act (the “Act”.) You also ask whether the simplified method can be used to calculate the travel expenses for the purpose of the METC.

Our Comments

Under paragraph 118.2(2)(g) of the Act, an individual may claim as an eligible medical expense an amount paid to a person engaged in the business of providing transportation services, to the extent that the payment is made for the transportation of :

(i) the patient, and

(ii) one individual who accompanied the patient, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant from the locality where the patient dwells to a place, not less than 40 kilometres from that locality, where medical services are normally provided, or from that place to that locality, if

(iii) substantially equivalent medical services are not available in that locality,

(iv) the route travelled by the patient is, having regard to the circumstances, a reasonably direct route, and

(v) the patient travels to that place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the patient to travel to that place to obtain those services.

In addition, under paragraph 118.2(2)(h) of the Act, an individual may claim an amount paid for reasonable travel expenses (for example, accommodation, meals and parking) incurred in respect of the patient and, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant, in respect of one individual who accompanied the patient, to obtain medical services in a place that is not less than 80 kilometres from the locality where the patient dwells if the circumstances described in subparagraphs (g)(iii), (iv) and (v) above apply.

While it is a question of fact whether the above requirements are met, it is our view that the requirement in (iii) may be met even if medical services are available nearer to the individual's locality if, in the circumstances, it is reasonable for the individual to have travelled to the place where the medical services were obtained.

Subsection 118.2(2) of the Act allows travel expenses for only “one accompanying individual” as eligible medical expenses for the purposes of the METC (if all the above conditions are met). Even if more than one individual accompanied the patient, the travel costs incurred may qualify as medical expenses for only one individual.

Based on the information provided, it is our view that the eligible travel expenses incurred for the period of time from when you left your home location until the time you returned home would likely qualify as medical expenses for the purposes of the METC, subject to meeting the conditions described above.

For meals and vehicle expenses, you can choose to use the detailed method or the simplified method for calculating meal and vehicle expenses. If you use the detailed method, you have to keep all receipts and records for your 12-month period. For accommodation expenses, you must provide receipts and you must be able to demonstrate that the amount paid for accommodation is necessary as a result of the distance travelled and your medical condition. You can claim the amount for accommodation as shown on your receipts. More information on this topic, including the rates that can be used under the simplified method to calculate meal and vehicle expenses, can be found on the Canada Revenue Agency’s web site at: www.cra-arc.gc.ca.

Yours truly,

G. Moore
For Director
Trusts and Business Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch