Follow these links to information you may find helpful:
● are private therapy expenses tax deductible?
● online tax forms for people with disabilities
● tax benefits and credits:
· Child Disability Benefit · Disability Tax Credit · Fitness Credit
● New Registered Disability Savings Plan (RDSP)
● tax and financial planning seminars
● other tax resources: *NEW*
● online resources and interesting articles
Are private therapy expenses tax deductible?
We hear this question from parents/caregivers a lot, and wish we had an iron-clad answer for you. Unfortunately, we don't. Based on our current understanding of Canada Revenue Agency (CRA) guidelines, if the private therapy is an official ABA program supervised by a psychologist, then it may be possible to deduct the expenses from your income. Private speech therapy expenses may also be eligible as a deduction. To support your claim(s), it may be beneficial to submit documentation to the CRA along with your income tax forms. Examples of supporting documentation could include:
● a letter from your child's family physician or pediatrician stating that private ABA therapy and/or speech therapy is necessary for your child's development and well-being; however, you will probably be required to pay a service fee to the medical professional for this documentation
● a letter from the psychologist supervising your child's private ABA program indicating that the program is occurring as directed by him/her In case of audit, remember to keep detailed records, such as invoices, for the private therapy for any claims you intend to submit. Bear in mind that any portion of these expenses that are reimbursed by group insurance plans are not eligible to be deducted from your income. We offer no guarantee that your child's private therapy expenses will be tax-deductible, even with supporting documentation. However, the following information about eligible expenses and medical benefits from the CRA may be of assistance in the completion of your income tax forms:
● eligible therapy expenses
● summary of medical benefits
If you are a parent or professional and have additional information or helpful hints to add to this section of our website, please provide it in writing to our chapter's Family Support Coordinator, Tiffany MacDonald at firstname.lastname@example.org.
Online tax forms From Canada Revenue Agency (CRA):
● Tax Information and Forms for People with Disabilities
Tax benefits and credits Information from Canada Revenue Agency (CRA):
● Child Disability Benefit (CDB): A tax-free benefit for families who care for a child under age 18 with a severe and prolonged impairment in mental or physical functions. A Disability Tax Credit Certificate (Form T2201) is required to apply for CDB and must be certified by a qualified practitioner (ie. medical doctor). The form can be submitted at any time, or can be filed as an attachment to your income tax return.
● Disability Tax Credit
The disability amount, also referred to as the disability tax credit, is a non-refundable tax credit that reduces the amount of income tax payable. Part or all of this amount may be transferred to your spouse or common-law partner or other supporting person. Additional info regarding DTC. To learn more about applying click here.
● Fitness Credit
Information from Autism Ontario:
Registered Disability Savings Plan (RDSP)
● A Helping Hand: How advisors can aid parents of disabled children: Scanned copy of copyrighted article that appeared in the September 2007 edition of Forum Magazine: Ages and Stages: Comprehensive Financial and Retirement Planning; posted here with permission from author Lynn Biscott, CFP, RFP, M.Ed., Fernwood Consulting Group Inc.; 416-429-5705 or email email@example.com
● RDSP Information from Autism Ontario
● Registered Disability Savings Plan: securing the future for Canadians with disabilities includes highlights of the RDSP and the Disability Savings Grant and Bond prepared by PLAN(Planned Lifetime Advocacy Network).
Tax and financial planning seminars
RDSP Seminars across Ontario: http://www.communitylivingontario.ca/families-individuals/funding-services/rdsp/rdsp-sessions-schedule
In-person seminars and one-on-one consultations will be conducted by Brendon D. Pooran, a Toronto-based lawyer that provides advice on will and estate planning, government benefits and disability law. http://www.pooranlaw.com/
Upcoming seminars from PLAN Toronto: http://www.plantoronto.ca/
Other tax resources
● Disabilities, Special Needs and Financial Planning: May 2008 A special report from Advisor.ca
● Henson Trust: Wikipedia definition
● Tax Tips - 2016 Taxation Year prepared by Graeme Treeby of The Special Needs Planning Group
● TaxWise Online support specializing in medical and disability tax
● What is a Henson Trust? Learn the origin of the Henson Trust and why it's important for you to include specific language in your Will.
Online Resources and intersting articles:
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