Principal Issues: Whether the cost incurred for the services of a sign language (ASL) interpreter is an eligible expense for the purpose of calculating the amount of disability supports deduction available in computing the income of a person with disabilities.
Position: Yes
Reasons:
Provided for in clause 64(a)(ii)(A) of the Act.
2006-019214 XXXXXXXXXX D Tiu (613) 957-8961 December 12, 2006
Dear XXXXXXXXXX:
Re: Cost of Interpreting Services
We are writing in response to your June 6th, 2006 inquiry on the above subject. You inquired whether the cost incurred for the services of a sign language (ASL) interpreter is an eligible expense for the purpose of calculating the amount of disability supports deduction available in computing the income of a person with disabilities under the Income Tax Act (the "Act"). You indicated that you and your immediate, and some of your extended family members are all deaf.
Written confirmation of the tax consequences inherent in a particular transaction or series of transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R5. In any event, a request cannot be considered for a ruling when the transactions are completed or where the issues involved are primarily questions of fact. Notwithstanding the foregoing, we are prepared to provide the following general comments.
The disability supports deduction in section 64 of the Act, applicable to the 2004 and subsequent taxation years, provides a deduction from income in respect of certain eligible expenditures paid in the year by a disabled individual for assistive devices or supports that enable the individual to earn certain kinds of taxable income or to attend high school, college, university, or other designated educational institution. The section was amended, applicable for the 2005 and subsequent taxation years, to expand the list of eligible expenses for purposes of the disability supports deduction. However, one cannot claim an amount already claimed as a medical expense, amounts claimed by someone else, or amounts that are reimbursed by a non-taxable payment such as insurance.
The disability supports deduction is only available to persons with a disability. Form T929, Disability Supports Deduction, is available for use to calculate the amount of the deduction that may be claimed in respect of eligible expenses incurred by the disabled person.
For a list of eligible expenses and their applicable taxation years, please visit the Canada Revenue Agency site at http://www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-e.html#P503_38065. The cost of sign-language interpretation services used by someone with a speech or hearing impairment and paid to someone in the business of providing such services is included in the list of eligible expenses. As indicated above, you may use Form T929 to calculate your claim. A copy is attached and the same may be accessed electronically through the site noted above.
Yours truly,
Robin Maley
Section Manager
For Division Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
Attachment: T929 form