What Autism Treatments Are Considered To Be Tax Deductible?

Canada Customs and Revenue Agency (CCRA) has new guidelines regarding the Tax Deductible Status of Autism Treatments including Intensive Behavioural Treatment.  If you are using any "unconventional" (non-medical) program including Lovaas or Music Therapy, we suggest that you review the following guidelines and discuss them with a tax professional or Revenue Canada.  Please note that although many medical plans do not cover these treatments, they are recognized by CCRA and are deductible, but documentation is required.

CCRA Services for People with Disabilities.  

Tax Information Concerning People With Disabilities Revenue Canada's (CCRA) 

Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction CCRA Updated 2003-03-24

Disability Tax Credit Certificate: Use this form to file your disability claim with Revenue Canada.

Other tax related information for people with disabilities CCRA

Ten Income Tax Tips for Persons with Disabilities and Their Families  PLAN

Parents can now transfer the disability amount for their dependent children to their own tax returns.  Consult you tax guide for more.

Music Therapy is tax deductible as a medical expense, meaning that once calculated as part of your tax return a portion of the actual cost will be applied to reduce your taxable income.  When submitting your return to Revenue Canada, expect them to require that you produce your receipts each year for this therapy.  It is likely that, initially, the taxation agent will disallow the deduction without fully reading the receipts as they seem to feel that music therapy is the same as music lessons.  Therefore, you need to ensure that they understand that although the therapy is provided through the Victoria Conservatory of Music, it is therapy not lessons.  We suggest that, when you send your receipts for their review, you attach a covering letter explaining this in detail and drawing their attention to the relevant decisions in tax law: (Court Numbers 97-495(IT)I and 97-496(IT)I).  We also suggest that you obtain a letter certifying the therapy, from the therapist.  Once the correct decision is entered, and this may take a while, Revenue Canada is very good about maintaining continuity on your tax files.

Child Disability Benefit

OTTAWA, July 17 2003 - The Canada Customs and Revenue Agency (CCRA) announced the implementation of the new Child Disability Benefit (CDB) for children who have a severe and prolonged impairment. The CDB is a tax-free supplement, for eligible recipients, to the CCTB and the Children's Special Allowance. It helps families with the cost of caring for children under the age of 18 who have a severe and prolonged mental or physical impairment. The CDB will provide up to $133.33 a month in financial assistance for each eligible child.  The CCRA will automatically calculate and include the CDB in the CCTB payment for families who have already submitted Form T2201, Disability Tax Credit Certificate. They will not have to complete any other forms.  If you receive the CCTB for a child with a severe and prolonged mental or physical impairment but have not submitted Form T2201 on behalf of that child, please complete the form, get it signed by a qualified person, and send it to your local tax centre.  To find out if your child is eligible for the CDB, please see the eligibility conditions outlined on Form T2201. Families with an eligible child who have not submitted Form T2201 are encouraged to apply as soon as possible to prevent delay when payment of the supplement becomes effective. To get a copy of Form T2201 and for more information about the CDB supplement, the conditions for eligibility, and how to apply, visit the CCRA's
Web site at www.ccra.gc.ca/benefits, or call the CCTB enquiries line at 1-800-387-1193.  A fact sheet with more information is available at www.ccra.gc.ca on the CCRA Web site.  Fact Sheet.  It should be noted that only low income families qualify for this benefit, as there is a means test involved - based on your last tax year's taxable family income.