If you have a child with a learning disability, you may qualify for valuable federal tax credits. The Learning Disabilities Association of Canada (LDAC) has engaged in several correspondences and meetings with Finance Canada and Canada Revenue Agency (CRA) over the last few years to ensure that individuals with learning disabilities are fairly treated under the Income Tax Act. Because tax laws are complex, and many tax preparers often do not have occasion to use these unique tax credits, families are at risk of losing refunds worth many thousands of dollars.
This article provides a brief summary of the most significant tax benefits and should not be considered legal advice. Tax decisions should not be made simply on the basis of the information provided here. You are advised to print out this article and give a copy to your tax advisor.
Following are clarifications on a number of expenses related to learning disabilities which are eligible under the Medical Expense Tax Credit (METC) of the Income Tax Form. 
- The cost of a psychological assessment to determine if there is a diagnosis of learning disabilities.
Section 118.2(2) (a) of the Income Tax Act includes as an expense eligible for the Medical Expense Tax Credit (METC) payments to a medical practitioner where a medical practitioner may be an authorized psychologist.
- Tutoring services to remedy basic academic skills notably reading, spelling, written expression and mathematics when the delay in acquisition of basic academic skills is secondary to specific learning disabilities.
The 1999 federal budget expanded the list of expenses eligible for the METC to include tutoring for persons with learning disabilities.
- Tutoring services to remedy deficits and maximize strengths in the learning disabilities profile including organizational strategies, study skills, time management, coordination activities, social skills training, strategies to improve attention, memory, reasoning, logic, communication, and non-verbal visual-perceptual abilities.
These expenses are related to the expansion of eligible expenses in the 1999 federal budget.
- Talking books
These expenses may also be related to the expansion of eligible expenses in the 1999 federal budget.
- Cost for transportation to and from assessment, therapy and tutoring sessions.
Specified transportation costs incurred to obtain medical services are included as eligible expenses under section 118.2 (2) (g) and 118.2 (2) (h) of the Income Tax Act. If a medical expense is an eligible expense under the METC then the related qualifying transportation costs may also qualify as an eligible expense. Generally, eligibility is restricted to transportation over 40 kilometers to ensure that only above average expenses receive tax assistance.
- Costs associated with other therapy services not covered under Medicare (i.e.: speech, occupational therapy or psychological therapy)
Again, section 118.2 (2) (a) of the Income Tax Act includes as an expense eligible for the METC payments to a medical practitioner where a medical practitioner may be one of a number of medical professionals as described in Revenue Canada's Interpretation Bulletin, IT-519R2. Also, the 1999 federal budget extends the METC, under certain conditions to medical therapies that have been prescribed by a medical doctor, psychologist or occupational therapist, but which do not require a qualified therapist or medical practitioner to administer.
- Fees for specialized camps (summer/winter) and specialized private schools. In this case, the specialization is learning disabilities.
Here, the relevant legislation is section 118.2 (2) (e) of the Income Tax Act. This provision of the METC includes care and training at a school, institution or other place that specializes in the disability that the individual who is attending as an eligible expense.
Key Tips
You do not need to apply for the Disability Tax Credit Certificate to claim any of the above eligible medical expenses. Services purchased must be provided by someone ordinarily engaged in the business of providing such a service to the public and must not be related to the patient. The following written documentation must accompany a claim:
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a letter (copies of assessment are not necessary) from a medical practitioner that certifies the individual is a person who because of a diagnosed learning disability requires the services.
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a letter from the service provider certifying that the individual is in receipt of such a service because of his/her learning disability along with a detailed description of the individual's program with the service provider.
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original receipts of services purchased (please keep a copy for your files).
The costs of a computer and software are still not accepted as an eligible expense. Again, you should not rely on this guide alone to determine whether you can claim any of the expenses reviewed here under the Medical Expenses Tax Credit of the Income Tax Act. Tax decisions should not be made simply on the basis of this information fact sheet. You are advised to photocopy this fact sheet, give a copy to your tax advisor and consult with him/her
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