Principal Issues: [TaxInterpretations translation] Would the salary of a special educator who is paid by a taxpayer for educational services provided for the taxpayer’s child be eligible for medical expenses? Should a written statement from the physician be provided to certify that the child needs such services because of a learning disability or a mental impairment?
Position: General comments.
Reasons: Question of fact.
February 29, 2012
| Jonquière Tax Services Office Attention: Ms. Ghislaine Lévêque |
Income Tax Rulings Directorate Business and Trusts Division Danielle Bouffard 2011-042970 |
Medical expenses - services of a specialized educator
This responds to your email that we received on November 16, 2011 regarding the above subject. We took into account the additional information we obtained on February 27, 2012.
Unless otherwise indicated, all statutory references herein are to the provisions of the Income Tax Act (the "Act").
You described a situation where a parent has a daughter aged XXXXXXXXXX. She is permanently eligible for the disability tax credit in particular because of her mental functioning. Her parent is considering hiring a full-time or part-time specialized educator with a mandate to stimulate the child in a structured setting and according to her needs. The ratio would be one to one. That specialized educator would offer the services at the parent's home an average of 6 to 7 hours a day, up to 5 days a week. The educational program selected by the parent is the XXXXXXXXXX program.
You wish to know if the salary paid to such specialized educator for the services provided to the child would qualify as medical expenses, and thus qualify for purposes of the medical expense tax credit, and if a written statement from the doctor should be provided to certify that such child needs those services because of learning difficulties or mental impairment.
Our Comments
In general, for medical expenses to qualify for the medical expense tax credit, the fee must have been paid within a 12-month period ending in the calendar year. In addition, an individual's eligible medical expenses must have been paid on behalf of the individual, the individual’s spouse or a dependant. In that regard, a person qualifies as a "dependant" if, among other things, the person is a child of the individual and is a dependant of the individual for support at any time in the year.
Included in eligible medical expenses, by virtue of paragraph 118.2(2)(l.91), is remuneration for tutoring services that are rendered to, and are supplementary to the primary education of, a dependent of an individual who
(i) has a learning disability or a mental impairment, and
(ii) has been certified in writing by a medical practitioner to be a person who, because of that disability or impairment, requires those services, if the payment is made to a person ordinarily engaged in the business of providing such services to individuals who are not related to the payee.
Although, according to some information provided, the child appears to be eligible for the disability tax credit due, in particular, to a mental disability, we cannot confirm whether the services that would be offered by a specialized educator (by following the XXXXXXXXXX program or other program) would be tutoring services supplementary to primary education pursuant to paragraph 118.2(2)(1.91) and if a medical practitioner would certify that the child requires such services because of the child’s learning difficulties or mental impairment. Unfortunately, we cannot give you a more definitive answer based on the information received.
We hope that these comments are of assistance.
François Bordeleau, Advocate
Manager
Business and Trusts Section
Income Tax Rulings Directorate