Income Tax Info
Disease Medical expense
Incremental (additional) cost of Gluten-Free (GF) products now an eligible medical expense on T1 individual tax return
Individuals who suffer from celiac disease (gluten intolerance) are entitled to claim the incremental costs of purchasing gluten-free (GF) products as a medical expense for the 2003 and subsequent tax years.
These individuals are not, however, entitled to claim the Disability tax credit for the "inordinate" amount of time it takes to shop for or prepare GF products.
Who can claim the incremental cost of GF products?
Individuals, who have a certificate from a medical practitioner that states they require a GF diet because of celiac disease can claim the incremental cost of GF products as an eligible medical expense.
What is the "incremental cost"?
The incremental cost is the increased cost of purchasing a GF product as compared to the cost of a similar non-GF product. It is calculated by subtracting the cost of a non-GF product from the cost of a GF product. The calculation is shown below in the sample summary.
What items are eligible?
* Generally, the food items are limited to those produced and marketed specifically for GF diets.
Such items include, but are not limited to, GF bread, bagels, muffins, and cereals.
* Intermediate items will also be allowed where the celiac uses the items to make GF products for their exclusive use.
These include, but are not limited to, rice flour, GF spices, etc.
What if there are several people consuming the GF products?
If several people consume the products, only the costs related to the part of the product consumed by the individual with celiac disease are to be used in calculating the medical expense tax credit.
What documents do I need to support a claim for the medical expense tax credit?
The Canada Revenue Agency (CRA) is responsible for administering the new medical expense. As with all claims, receipts should be available on request by the CRA. A request for supporting documents could be made before or after the return has been assessed, so it is important to keep the following information available:
* a letter from the medical practitioner confirming the individual suffers from celiac desease and requires GF products as a result of that disease;
* a summary of each item purchased during the 12-month period for which expenses are being claimed (a sample summary is shown below); and
* a receipt to support the cost shown in column (4) of each GF product or intermediate product claimed.
You can find more information here:
Here is a sample tax chart for Medical Deduction purposes:1. Item
2. Number of items purchased
3. Average cost (per item) of non-GF product
4. Average cost (per item) of GF product
5. Incremental cost ( 4 ) - ( 3 )
6. Claim for GF item
7. (5 ) x (2) Incremental cost X Amount purchased.
Courtesy of: www.celiaccanada.com
If you have interest in the tax credit issue, please send
your comments ASAP to Health Canada.
The full proposal is available here in Acrobat: www.hc-sc.gc.ca
Health Canada, Health Products and Food Branch,
Letter From Cam Jackson, dated December 3, 2001
I feel very strongly that Bill 125 is a landmark piece of legislation that, if approved, would dramatically increase opportunity and independence for persons with disabilities. It is part of our vision of a fully accessible Ontario - - a province where old barriers are removed, and no new ones are created.
The special section spells out clearly how we intend to accomplish this goal in partnership with many important stakeholders.
As the articles make clear, two of the strongest features of the proposed legislation are engagement and flexibility. Stakeholders, particularly persons with disabilities, are engaged in ways that put them inside the process and make the responsible for change. At the same time, the bill encourages local flexibility, so long as compliance is achieved.
I hope you enjoy reading these and the many other interesting articles in the enclosed issue. I urge you to remain interested and involved in Ontario's drive for greater independence and opportunity for persons with disabilities.
Fact Sheet December 2000 from Canada Customs and Revenue Agency
Expanded criteria for the disability tax credit
Here is the link to:
In its February 2000 budget and the Economic Statement and budget update of October 18, 2000, the federal government expanded tax relief for persons with disabilities by broadening and enhancing the disability tax credit. The disability tax credit is a non-refundable tax credit, which is applied to reduce the amount of income tax a person may have to pay.
Amount in addition to the disability amount
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