This three-part publication examines the scope and application of the non-refundable medical expense tax credit under section 118.2 of the Income Tax Act, with a specific focus on wellness therapies. It analyzes which wellness-related expenses qualify for the credit, the evidentiary requirements taxpayers must meet, and the practical strategies for claiming these deductions within CRA’s administrative framework.
Section 118.2 provides a non-refundable credit for qualifying medical expenses, but the definition of “medical practitioner” varies by province, which directly determines whether alternative wellness therapies qualify for the credit.
Taxpayers claiming wellness expenses must satisfy both the federal statutory requirements under the Income Tax Act and the provincial regulatory framework governing which practitioners are recognized in their jurisdiction.
Proper documentation including prescriptions, receipts referencing a medical practitioner’s registration, and evidence of medical necessity can materially affect whether CRA allows or denies claims for wellness-related therapies.
This publication is available in print through Tax Hyperion. Contact the publisher or Primrose Tax Law for access to the full text.
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