2 February 2012 External T.I. 2011-0431291E5 - Medical expenses - Learning disability

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 the cost of a laptop computer, computer software and a digital voice recorder, all used to assist with learning disability (reading and writing), would qualify as eligible medical expenses for the purposes of the medical expense tax credit.

XXXXXXXXXX
					2011-043129
					André Gallant

February 2, 2012

Dear XXXXXXXXXX :

Re: Medical expenses

We are writing in reply to your letter sent to the XXXXXXXXXX Tax Centre and forwarded to us. You enquire whether the cost of a laptop computer, computer software and a digital voice recorder, all used to assist with learning disability (reading and writing), would qualify as eligible medical expenses for the purposes of the medical expense tax credit ("METC"). We also acknowledge the information provided to us via email on January 31, 2012.

More specifically, you are enquiring about the eligibility of the following items for the purposes of the METC:

• A computer that contains the following three software: Dragon Naturally Speaking; WiViK; and Read and Write Gold version 9; and
• A digital voice recorder along with THINK, SAY, WRITE.

It is our understanding that the Dragon Naturally Speaking is a speech recognition software that can be used by anyone (not only by individuals with disabilities) to dictate words to a computer without having to type the words yourself on the computer. This software would be used by the individual in question to complete reading response work (i.e., taking notes while reading). The WiViK software is an on-screen keyboard that would be used to assist the individual in question to create a written school project. The WiViK can include WordQ Text-to-speech, which assists with writing and editing, where sentences can be spoken to the user as words are typed and when proofreading. The Read and Write Gold version 9 is software designed for individuals struggling with reading and writing due to different disabilities. This software includes different functions, such as reading words in electronic documents to the individual. As for the digital voice recorder, it would be used by the individual to document ideas and knowledge.

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act (the "Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

Under paragraph 118.2(2)(l.42), a METC can be claimed for an amount paid on behalf of the patient who has a physical impairment, for the cost of voice recognition software. In order for the software to qualify, the patient must also have been certified in writing by a medical practitioner to be a person who requires the software because of this impairment. Based on the information provided, paragraph 118.2(2)(l.42) would not apply in the present situation since the individual in question has a learning disability, and not a physical impairment.

Pursuant to paragraph 118.2(2)(m) of the Act, an amount paid for a device or equipment may also qualify as an eligible medical expense if certain conditions are met. Generally, to qualify, the device or equipment must be prescribed by a medical practitioner, must be included in the list of qualifying devices or equipment described in section 5700 of the Income Tax Regulations (the "Regulations") and must meet such conditions as are prescribed by the Regulations as to its use or the reason for its acquisition.

Paragraph 5700(l.1), for example, refers to a "device or software designed to be used by... an individual with a severe learning disability, to enable the individual to read print".

It is a question of fact whether an individual has a severed learning disability and whether a device or software was designed to be used by such an individual to enable him or her to read print. Each case must be examined based on the facts and documents relating to a taxpayer's claim for the METC under paragraph 5700(l.1).

In this regard, the professional opinion of the taxpayer's medical practitioner remains, in our view, the best evidence in determining whether an individual is suffering from a severe learning disability.

While both the WiViK, that includes WordQ Text-to-speech, and the Read and Write Gold version 9 appear to enable individuals to read print, it is not clear based on the information provided whether the Dragon Naturally Speaking would also enable individuals to read print.

As for the laptop computer and the digital voice recorder described above, they are not listed in section 5700 of the Regulations and, therefore, the costs associated with acquiring these items would not qualify for the purposes of the METC.

We trust our comments will be of assistance to you.

Yours truly,

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