Trying to get pregnant? Claim Tax Credit For fertility Treatments in Canada
Many Canadians who have used reproductive technologies over the past 10 years are now eligible for a tax break due to Finance Minister Bill Morneau’s 2017 budget.
This will assist couples or singles who may spend into the thousands to get pregnant. A single round of In Vitro Fertilisation (IVF) can cost $10-15,000 and is generally not covered by health insurance. Add this to the meagre success rates of 20-35% per cycle, and the costs can keep rising. (National Institute for Health and Care Excellence).
This tax break move will help couples struggling to conceive, same sex couples, and singles who want to be single parents. Dr. Jeff Roberts, president of the Canadian Fertility and Andrology Society, says: “an estimated 10,000 people turn to assisted human reproduction technologies in Canada each year, roughly 80 per cent of whom have been trying to conceive for at least a year and meet the definition of infertility.”
He feels the tax breaks will be a great assistance to society: “Anything is a help, because I see patients all day long who need treatments like IVF and just simply can’t afford them.”
The low-down on the Medical Expense Tax Credit for Reproductive Technologies
Want some more info. about these expanded medical expense credits? Check out these FAQS below:
1. What is the proposed change to the Medical Expense Tax Credit (METC)?
For 2017 and subsequent tax years, Budget 2017 is changing the METC so that an amount will be considered a medical expense if the amount is paid for the purpose of conceiving a child and would be a medical expense if the person were incapable of conceiving a child because of a medical condition.
2. What eligible expenses can I include in the calculation of the METC as a result of the proposed change?
Generally the cost of medical services, drugs, and lab tests will be included in the calculation of the METC for an individual receiving treatment to conceive a child, such as in vitro fertilization. For more information refer to Lines 330 and 331- Eligible medical expenses you can claim on your tax return.
3. Will I be able to include the fees I paid for the services of a surrogate mother in the calculation of the METC?
No. The METC is generally not available to cover fees for the services of a surrogate mother.
4. If l am a surrogate mother, will I be able to include my eligible expenses incurred for the use of reproductive technologies in the calculation of the METC?
Yes. Refer to question 2.
5. I have already incurred expenses for the use of reproductive technologies but have not claimed them in my return. Will this proposed change allow me to claim these expenses?
The cool thing about this new tax-break is that you can request adjustments for past reproductive costs, and it can be claimed for 10 years prior to the year you make the request. You can request an adjustment by filing a T1 Adjustment request or by requesting the change directly using My Account.
Note: Reassessments will only be processed after the proposed changes receive royal assent.
6. Where can I learn more about the METC and how it is calculated?
Refer to Lines 330 and 331-Eligible medical expenses you can claim on your tax return to learn how to calculate the METC.
7. Where can I get more information about the changes to this tax credit?
Check out the CRA website.