Chapter History S1-F1-C3, Disability Supports Deduction

Introduction

The purpose of this Chapter History page is to highlight any amendments to the information contained in an interpretation bulletin that is now reflected in a chapter of an income tax folio as well as to identify any subsequent amendments to a folio chapter. It outlines amendments that have been made as a result of legislative changes and proposed legislative changes, precedential court decisions, as well as new or revised interpretations of the Canada Revenue Agency (CRA).

Update January 20, 2016

The Summary and Reference sections of this Chapter have been revised to refer readers to Guide RC4064, Disability – Related Information. Previously, readers were referred to Guide RC4064, Medical and Disability – Related Information. This guide was cancelled and replaced on January 5, 2016 with Guide RC4064, Disability – Related Information and Guide RC4065, Medical Expenses.

Update November 24, 2015

Minor changes have been made to improve the usability of the income tax folios:

  • the Summary section has been moved to the top of each folio chapter to be more immediately visible and helpful to readers;
  • the Application and Reference sections have been moved to the end of the Chapter which is more appropriate for administrative content of this nature.  However, these sections now appear in the Table of contents for easy access;
  • the statement that folios are only available in electronic format has been moved to the end of the Application section; and
  • the words “as promulgated under the Act” in connection with the Income Tax Regulations have been removed from the Application section, in the interest of using plain language.

Update May 6, 2014

Throughout the French version of the Chapter and its Chapter History, general revisions have been made to improve readability.

Update March 28, 2013

General

Income Tax Folio S1-F1-C3, Disability Supports Deduction, together with Income Tax Folio S1-F1-C1, Medical Expense Tax Credit and Income Tax Folio S1-F1-C2, Disability Tax Credit, replace and cancel Interpretation Bulletin IT-519R2, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction.

In addition to consolidating the content of the former interpretation bulletin, general revisions have been made to improve readability. Any substantive technical and interpretive changes to the information outlined in the former interpretation bulletin are described below. Except as otherwise noted, all statutory references herein are references to provisions of the Income Tax Act, R.S.C., 1985, c.1 (5 th Supp.), as amended.

Legislative and other changes

The discussion of section 64 was formerly found in ¶68 - 71 of Interpretation Bulletin IT-519R2. The discussion is now found in this stand-alone Chapter.

Prior to 2004, the disability supports deduction in section 64 was known as the attendant care deduction. A legislative amendment made by S.C. 2005, c. 19, s. 15(1) replaced the existing section 64 – Attendant care expenses, with a new section 64 – Disability supports deduction, effective for the 2004 and subsequent tax years. References in Interpretation Bulletin IT-519R2 to the attendant care deduction are replaced with references to the disability supports deduction.

¶3.1 and ¶3.2 (formerly included in the discussion at ¶68 of IT-519R2), discuss who may claim the disability supports deduction. The discussion has been expanded to reflect a legislative amendment made to section 64 by S.C. 2005, c. 19, s.15(1), effective for the 2004 and subsequent tax years, which extended the deduction to certain expenses incurred by persons who may not qualify for the disability tax credit.

¶3.4 (formerly included in the discussion at ¶69(a) of IT-519R2), has been revised to reflect two legislative amendments. Effective January 1, 1998, an amendment made by S.C. 1996, c. 23, s. 174(1), repealed clause (i)(C) of the description of A in paragraph 64(a), which removed the reference to a training course for which a training allowance was received under the National Training Act. This paragraph also reflects a legislative amendment made to subparagraph (i) of the description of A in paragraph 64(a) by S.C. 2001, c. 17, s. 43(1), effective for the 2000 and subsequent tax years, which added the attendance at a designated educational institution or a secondary school at which the taxpayer is enrolled in an educational program to the list of eligible activities.

¶3.5 and ¶3.6 (formerly included in the discussion at ¶68 of IT-519R2), have been expanded to reflect a legislative amendment made to section 64 by S.C. 2005, c. 19, s. 15(1), effective for the 2004 and subsequent tax years. The amendment extended the list of expenses eligible for the disability supports deduction to include those expenses listed in ¶3.6(a) ‑ (i). This amendment also clarified the requirements for claiming attendant care expenses and included these requirements in clause (ii)(J) of the description of A in paragraph 64(a), which is reflected in ¶3.6(j) of this Chapter. A legislative amendment made to subparagraph (ii) of the description of A in paragraph 64(a) by S.C. 2006, c. 4, s. 53(2), added the expenses described in ¶3.6(k) – (q) of this Chapter, effective for the 2005 and subsequent tax years.

¶3.6(j) (formerly included in the discussion at ¶68 of IT-519R2) is revised to replace the reference to "spouse" with a reference to "spouse or common-law partner" based on the 2000 same-sex partner bill.

¶3.9 and ¶3.10 (formerly ¶70 of IT-519R2) are expanded to clarify that where section 64.1 applies, the secondary school referred to in ¶3.6(i) of this Chapter does not have to be located in Canada. This is consequential to the legislative amendment made by S.C. 2005, c. 19, s. 15(1) which added clause (ii)(I) to the description of A in paragraph 64( a ) of the Act, effective for the 2004 and subsequent tax years.

¶3.11 – 3.13 (formerly included in the discussion at ¶69 of IT-519R2) are revised to reflect a number of legislative amendments. The references to training courses and training allowances under the National Training Act were removed from section 64 of the Act by legislative amendments made by S.C. 1996, c. 23, s. 174 which were consequential to the repeal of the National Training Act effective January 1, 1998. The $5,000 limit in paragraph 64(c) of the Act was repealed by S.C. 1998, c. 19, s. 11(2), effective for the 1997 and subsequent tax years. A reference to paragraph 56(1)(r) was added to clause 64(b)(i)(A) S.C. 2001, c. 17, s. 43(2), effective for the 2000 and subsequent tax years. Subparagraph 64(b)(ii) was also amended by S.C. 2001, c. 17, s. 43(2), effective for the 2000 and subsequent tax years, to provide the maximum limit for deductions under section 64 where the expenses were incurred to enable the taxpayer to attend school. The 2/3 of income limitation was removed from paragraph 64(b) by S.C. 2005, c. 19, s. 15(1), effective for the 2004 and subsequent tax years.

¶3.14 (formerly included in the discussion at ¶71 of IT-519R2) has been revised to reflect legislative amendments made to section 118.3 by S.C. 2001, c. 17, s. 96, effective for the 2000 and subsequent tax years, and S.C. 2006, c. 4, s. 63(2), effective for the 2005 and subsequent tax years which extended eligibility for the disability tax credit to a larger group of persons.

¶3.16 and ¶3.17 have been added to provide clarity on the amounts that must be included in computing the maximum limit with regard to scholarships and research grants.

¶3.18 is added to reflect a legislative amendment made by S.C. 2001, c. 17, s. 43(2), effective for the 2000 and subsequent tax years, which added an amount to the calculation of the maximum limit for taxpayer’s who incurred eligible disability supports expenses to enable their enrollment in an educational program at a designated educational institution or a secondary school.

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