1ST CHOICE Income Tax Service

• The 2008 Federal Budget included changes to the wording of the Income Tax Act which prevents non-prescription drugs from being an eligible medical expense.
• Prior to February 26, 2008, if a non-prescription drug was prescribed by a doctor and recorded in the same manner as prescription drugs, they could be considered an eligible medical expense. In this case a sales slip or incvoice from the pharmacist was sufficient recording to meet the requirements of an eligible medical expense.
• The revision to the Income Tax Act s.118.2(2)(n) provides that for drugs to be eligible medical expenses, they must be drugs "that can lawfully be acquired for use by the patient only if prescribed by a medical practitioner".
• If the patient is able to purchase the drugs off the shelf, the cost will not be an eligible medical expense!

The 2008 Federal Budget proposes to expand the list of medical devices and expenses that are eligible for the Medical Expense Tax Credit to include the following:

• altered auditory feedback devices for a speech disorder;
• electrotherapy devices for the treatment of a medical condition or severs mobility impairment;
• standing devices for standing therapy in the treatment of a severe mobility impairment;
• pressure pulse therapy devices for the treatment of a balance disorder; and
• eligible expenses for service aniamls that are specially trained to assist an individual who is severely affected by autism or epilepsy.
• GST will no longer be payable on the cost of training to help individuals cope with disabilities or disorders, such as autism.
• The list of GST-free medical and assistive devices will be expanded to such things a service dogs.

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