9 July 2003 External T.I. 2003-0016055 - MEDICAL EXPENSES - ELIGIBLE PERIOD

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: Medical expenses - availability of 24 month eligible period in the case of death

Position: Available to the deceased under current law. Will be available to spouse, etc. under proposed amendments.

Reasons: Wording of legislation and draft amendments.

XXXXXXXXXX 2003-001605
B. G, Dodd
(613) 957-8953
July 9, 2003

Dear XXXXXXXXXX:

Re: IT-519R2 (Medical Expense Tax Credit)

We are writing in reply to your letter dated April 25, 2003 concerning the medical expense tax credit and the 24 month period applicable in the case of the death of an individual.

As you noted, a person may claim a medical expense tax credit for a particular year based on eligible medical expenses paid in respect of that person as well as, for example, that person's spouse and eligible dependents. The medical expenses must have been paid in any 12-month period ending in that year and not claimed for a preceding year.

In the case of an individual who dies in a particular year, a medical expense tax credit may be claimed in respect of eligible medical expenses of that individual that were paid within any period of 24 months that includes the day of death (if not claimed for any other year). The tax credit in respect of such medical expenses may be claimed on the deceased individual's income tax return for the year of death.

Where a person is entitled to claim a medical expense tax credit in respect of medical expenses of another person and the other person has died in a particular year, under proposed amendments to the Income Tax Act, the person will be entitled to claim medical expenses for the deceased individual paid within any period of 24 months that includes the day of death. As such, eligibility to use the 24 month period of medical expenses in the case of death will not be restricted to a claim by the deceased individual. This change is intended to be effective for 2001 and later years. (If this is relevant for your income tax returns for 2001 or 2002, you may wish to contact your local tax services office.)

With respect to interpretation bulletins, these are normally updated to reflect legislative changes only after the amendments have been enacted into law. The T1 Income Tax and Benefit Guide for 2002 does, however, refer to the above proposal regarding medical expenses.

We hope this will be of assistance.

Yours truly,

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

- 2 -