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 a taxpayer's contribution to a long-term health care insurance plan qualifies for the medical expense tax credit.
Position: It depends on whether the amounts were paid to a "private health services plan" as defined in subsection 248(1) of the Act.
Reasons: Paragraph 118.2(2)(q)
XXXXXXXXXX
Dear XXXXXXXXXX:
The office of your member of Parliament, XXXXXXXXXX, sent me a copy of your correspondence, which I received on February 27, 2013, about the medical expense tax credit (METC). You want to know whether your contribution to a long-term health care insurance plan qualifies for the METC.
Contributions made for coverage under a long-term health care insurance plan may qualify as medical expenses under the Income Tax Act if they were paid as a premium, contribution, or other type of payment to a private health services plan as defined in the Act.
You will find general information about private health services plans in Interpretation Bulletin IT-339R2, Meaning of private health services plan [1988 and subsequent taxation years], available on the Canada Revenue Agency (CRA) Web site at www.cra.gc.ca/E/pub/tp/it3339r2. This bulletin explains that a plan is considered a private health services plan only if it limits coverage to hospital care, hospital expenses, medical care, or medical expenses that normally qualify as medical expenses under the Act. Therefore, if a plan includes benefits in addition to medical expense payments, it would not meet the definition of a private health services plan.
Also, Interpretation Bulletin IT-519R2, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, available on the CRA Web site at www.cra.gc.ca/E/pub/tp /it519r2-consolid, contains more information on eligible medical expenses. Paragraph 64 deals specifically with premiums paid by an individual to a private health services plan.
I trust the information I have provided is helpful.
Yours sincerely,
Gail Shea, P.C., M.P.
Minister of National Revenue
c.c.: XXXXXXXXXX
Ananthy Mahendran
(905) 721-5204
2013-048071
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