Disability-Related Federal Personal Income Tax Measures

Disability Supports Deduction

The 2004 budget proposed to replace the attendant care deduction with a broader disability supports deduction that will allow expenses in respect of disability supports (e.g., sign language interpreters and talking textbooks) to be deducted from income if they are incurred for education or employment purposes. As a result, income used to pay for these expenses will not be taxed and will not affect income-tested benefits. In the case of an employee, the deduction will generally be limited to the lesser of the amounts paid for eligible expenses and the taxpayer’s earned income. A similar limit also applies to students, except that they can claim the deduction against non-earned income, subject to the length of their education program.

The list of expenses eligible for this deduction is specified. The need for some of these supports has to be certified by a medical practitioner.

Individuals need not be eligible for the disability tax credit in order to claim expenses under the disability supports deduction.
Expenses claimed under the disability supports deduction will not be claimable under the medical expense tax credit. Persons who purchase disability supports for purposes other than education or employment will still be able to claim them under the medical expense tax credit.

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