Medical Expenses Tax credit (METC) – Reproductive Technologies
Notice to the reader
This measure has received Royal Assent.
Currently, the calculation of the METC includes, among other expenses, medical services expenses paid to a medical practitioner, nurse, and public or private hospital as well as the cost of medications and lab tests, including where these costs are associated with certain reproductive technologies for an individual who has a medical condition preventing them from conceiving a child. For 2017 and subsequent tax years, Budget 2017 proposes to clarify that these same expenses will be considered eligible for the METC even if the individual does not have a medical condition preventing them from conceiving a child.
1. What is the proposed change to the METC?
For 2017 and subsequent tax years, Budget 2017 proposes to clarify the application of the METC so that an amount will be considered a medical expense if the amount is paid for the purpose of conceiving a child and would be a medical expense if the person were incapable of conceiving a child because of a medical condition.
2. What eligible expenses can I include in the calculation of the METC as a result of the proposed change?
Generally the cost of medical services, drugs, and lab tests will be included in the calculation of the METC for an individual receiving treatment to conceive a child, such as in vitro fertilization. For more information refer to Lines 330 and 331-Eligible medical expenses you can claim on your tax return.
3. Will I be able to include the fees I paid for the services of a surrogate mother in the calculation of the METC?
No. The METC is generally not available to cover fees for the services of a surrogate mother.
4. If I am a surrogate mother, will I be able to include my eligible expenses incurred for the use of reproductive technologies in the calculation of the METC?
Yes. Refer to question 2.
5. I have already incurred expenses for the use of reproductive technologies but have not claimed them in my return. Will this proposed change allow me to claim these expenses?
Yes, under the proposed legislation, you will be able to make a request for an adjustment because of these eligible medical expenses for a prior year. The CRA will consider your request only if it relates to a tax return for any of the 10 calendar years before the year in which you make your request. For example, your request made in 2017 must relate to a tax return for 2007 or later. You can request an adjustment by filing a T1 Adjustment request or by requesting the change directly using My Account.
Note: Reassessments will only be processed after the proposed changes receive royal assent.
6. Where can I learn more about the METC and how it is calculated?
Refer to Lines 330 and 331-Eligible medical expenses you can claim on your tax return to learn how to calculate the METC.
7. Where can I get more information about the changes to this tax credit?
The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its Web pages often. All new forms, policies and guidelines will be posted as they become available.
In the meantime, please consult the Department of Finance Canada’s Budget 2017 documents for details.
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