Principal Issues: Does the cost of a service dog for people with Post-Traumatic Stress Disorder (PTSD) qualify as an eligible medical expense?
Position: Only if the conditions in paragraph 118.2(2)(l) of the Act are met.
Reasons: Legislation
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Dear XXXXXXXXXX:
Thank you for your correspondence about whether the costs of a service dog for people with post-traumatic stress disorder (PTSD) qualify as an eligible medical expense and whether you should ask for a ruling on the matter. Thank you also for your understanding regarding the delay of this response.
The cost of acquiring and caring for a service dog or other animal is eligible for the medical expense tax credit only in certain circumstances. Specifically, the Income Tax Act specifies that the cost of acquiring and caring for an animal is an eligible medical expense for an individual who:
- is blind or profoundly deaf;
- has severe autism, diabetes, or epilepsy; or
- has a severe and prolonged impairment that markedly restricts the use of his or her arms or legs.
The animal must be specially trained to help the individual cope with the impairment and must be provided by a person or organization whose main purpose is the training of these animals. You can find this information on the Canada Revenue Agency (CRA) website at www.cra.gc.ca/tx/tchncl/ncmtx/fls/s1/f1/s1-f1-c1-eng.html.
Unfortunately, where none of the conditions listed above apply, the costs of a service dog to assist an individual with PTSD would not be an eligible medical expense.
Although the agent who suggested that you request a ruling was trying to be helpful, the CRA cannot change what is allowed as a medical expense under the Act. The CRA is responsible for administering and enforcing the Act. The Department of Finance Canada is responsible for tax policy, which determines what qualifies for the expense, and the legislation in the Act. Therefore, I am sending a copy of our correspondence to the Honourable, Bill Morneau, Minister of Finance, for his consideration.
Thank you for bringing this matter to my attention.
Sincerely,
The Honourable Diane Lebouthillier, P.C., M.P.
Minister of National Revenue
c.c.: The Honourable Bill Morneau, P.C., M.P.
Minister of Finance
Bill.Morneau@parl.gc.ca
George A Robertson
905-721-5196
2016-064718