Fertility treatments, such as in vitro fertilization (IVF) or intrauterine insemination (IUI), can be quite costly. In Canada, some of these expenses might be covered by provincial healthcare plans or private insurance. Additionally, you may be able to claim certain fertility treatment costs as deductible medical expenses on your income tax return. In Ontario, this tax relief is called the Medical Expense Tax Credit (METC), which helps reduce the financial burden of medical expenses for you or your dependents.
The METC allows individuals to claim a portion of specific medical expenses, including some related to fertility treatments, as non-refundable tax credits. This can help offset the costs by reducing the amount of tax you owe. In order to qualify, expenses such as IVF, IUI, certain medications, and even travel expenses for treatment (if you need to travel more than 40 kilometers one way) may be eligible. To claim these expenses, you must have a prescription or proof from a doctor stating that the treatments were necessary.
There are two main sources of financial help for fertility treatments in Canada: provincial health plans and private insurance. Some provinces, such as Ontario and Quebec, offer partial or full coverage for certain fertility treatments, but coverage varies from one province to another. It’s important to check what is available in your region. Private health insurance plans may also provide coverage for fertility treatments, so reviewing your policy or consulting with your insurance provider is a good idea to understand what is and is not covered.
To claim fertility treatment expenses on your tax return, you need to keep all receipts for your fertility-related expenses, including medications, treatment costs, and travel expenses. You should use the Canada Revenue Agency’s (CRA) tax forms to claim these medical expenses, listing all eligible expenses and attaching the necessary receipts. It’s important to note that the CRA only allows you to claim expenses that exceed a certain percentage of your income—either 3% of your net income or $2,759 for 2024, whichever is less.
Expenses can be claimed for any 12-month period ending in the current tax year, which provides some flexibility in choosing which expenses to claim.
In summary, knowing your coverage options and how to claim fertility treatment expenses on your taxes can help ease the financial burden. Be sure to review your provincial health plan and private insurance to understand what is covered and utilize any available tax credits to reduce your costs.
By staying informed and organized, you can navigate the financial aspects of fertility treatments more effectively and with greater ease.
Posted on 15 September 2024