Technical Advisory Committee on Tax Measures for Persons with Disabilities
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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.