Medical Expense Tax Credit - Service Animals

Budget 2018 proposes to include certain expenses incurred after 2017 in respect of an animal specially trained to perform specific tasks for a patient with a severe mental impairment in order to assist them in coping with their impairment (e.g., a psychiatric service dog trained to assist with post-traumatic stress disorder).

Eligible expenses are the same as they would be in the case of other impairments described above and they include:

• the cost of the service animal;
• the cost for its care and maintenance, including food and veterinary care;
• reasonable travel expenses incurred for a patient to attend a facility that trains patients in the handling of such animals; and
• reasonable board and lodging expenses for a patient’s full-time attendance at such a facility.

No. Expenses will only be eligible if they are in respect of an animal that has been specially trained to perform tasks that assist a patient with a severe mental impairment in coping with their impairment. Providing comfort or emotional support (such as by providing physical affection on command) is not such a task. Examples of tasks psychiatric service dogs could perform include: guiding a disoriented patient, searching the home of a patient with severe anxiety before they enter, and applying compression to a patient experiencing night terrors.

No. For these other impairments, in order for expenses to qualify for the METC, the animal must be specially trained to assist the patient in coping with the impairment and must be provided by a person or organization one of whose main purposes is such training of animals.

When you file your income tax return, do not send any supporting documentation. Keep them in case we ask to see them.

The CRA may ask for a signed statement from a medical practitioner showing when the impairment began and what the duration of the impairment is expected to be. You do not need a signed statement from a medical practitioner if the CRA already has an approved Form T2201, Disability Tax Credit Certificate for this impairment.

You may also be asked for receipts for expenses paid or other documents to support your claim, such as proof that the animal was provided by a person or organization one of whose main purposes is providing the special training.

Refer to Lines 330 and 331 – Eligible medical expenses you can claim on your tax return to learn how to calculate the METC.

The CRA provides the latest information on the proposed changes on Canada.ca. Taxpayers should check online regularly for updated forms, policies, guidelines, questions and answers and guidance.

In the meantime, please consult the Department of Finance Canada’s Budget 2018 document for details.