More and more individuals are seeking alternative medical treatment outside of traditional medical professions, from practitioners such as naturopaths, acupuncturists and massage therapists. In addition, they may also use vitamins, herbs and other supplements recommended by their medical professional instead of pharmaceutical drugs. Many of the costs associated with these treatments and supplements are not covered under provincial or private health plans. The question then becomes: can the Medical Expense Tax Credit (METC) be claimed for the out of pocket costs incurred for these services and substances on one’s personal income tax return?
Fees paid to a medical practitioner
The Income Tax Act allows an METC for fees paid by an individual in respect of medical and dental services provided by a "medical practitioner," dentist or nurse, or an institution. Thus, in order to claim the METC one must ensure the definition of “medical practitioner” is met.
A "medical practitioner" generally is a person who is authorized to practice medical or dental services pursuant to the laws of the jurisdiction in which the services are rendered. Not all provinces authorize the same alternative medicine disciplines under their respective Health Professions Acts. For example, acupuncture treatment is authorized in Alberta, but is not authorized in Ontario. Therefore, individuals who get treatments from an acupuncturist in Alberta can claim an METC, while someone who obtains the same treatment in Ontario cannot claim the METC. The same would apply to fees paid for massage therapy, which is authorized in Ontario and British Columbia but not in New Brunswick.
Thus, eligibility for the METC for any particular alternative medicine depends upon whether that service is authorized under the laws of the province in which the service is provided.
Vitamins, herbs and other supplements
There is a misconception when it comes to the ability of a taxpayer to claim the METC for the expenses incurred to purchase vitamins, herbs and other supplements prescribed or recommended by medical practitioners. The Income Tax Act allows an METC for expenses incurred to purchase drugs, medications or other substances as long as they cannot lawfully be acquired without a prescription from a medical practitioner, and as long as the prescription is recorded by a pharmacist in a prescription record. The vitamins, herbs and other supplements recommended or prescribed by alternative medicine practitioners are often over-the-counter items which can be acquired without a prescription and are not recorded by a pharmacist. As a result, most of these expenses cannot be claimed as an METC.
Contact your Collins Barrow advisor for assistance in determining whether your expenses for alternative medical services and substances qualify as METCs under the Income Tax Act.
Chantal Galloway, CA, is a Team Leader in the Sudbury office of Collins Barrow.
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