The Medical Expense Tax Credit under the Income Tax Act (Canada)
Can you claim Tuition as a tax credit?
In some cases, individuals have successfully claimed Arrowsmith tuition as a tax credit. You should speak with your tax specialist to confirm your particular situation. In general terms, here is information that may help:
Medical Expense Tax Credit
If you have a letter from a Psychologist or Medical Doctor that clearly states that you or your child has a learning disability, and is receiving services from Arrowsmith School to address this condition, you may be able to claim the tuition as a medical expense. With your tuition receipt, we provide a letter and a template that help support your claim, but again you should consult a tax expert.
See this case for an example of a case that was successfully litigated when a CRA assessor refused the claim.
Disability Tax Credit
If your doctor or psychologist can complete form T2201, you may be eligible for a disability tax credit and also be able to deduct tuition costs. This seems to be a stronger case for the CRA’s acceptance of your claims, but you should consult with your tax advisor for more details.
This legal case is an example of how the Disability Tax Credit was viewed in court.
There are a number of details arising from various court cases that make each situation unique. While we believe that Arrowsmith Schools provide the appropriate documentation, staff qualifications, facilities, and programs to support your claims for medical expenses and/or disability tax credits, we urge you to consult with your tax advisor before making your claim. And, of course, we will be happy to cooperate with your tax advisor wherever possible.
For more information, please contact us.