When Do They Qualify as a Medical Expense?

If you or a family member require assistance with daily living activities due to a medical condition or disability, the amounts paid for that care may qualify as eligible medical expenses on your tax return.

At Toro Accounting, we help families structure these claims properly to maximize the Medical Expense Tax Credit (METC) and avoid common CRA issues.

Here’s what you need to know.

🔹 What Are Attendant Care Expenses?

Attendant care expenses are payments made to a person or agency that provides personal care services to someone with a severe physical or mental impairment.

These rules are administered by the Canada Revenue Agency (CRA).

If the requirements are met, these expenses can be claimed as part of the Medical Expense Tax Credit.

🔹 What Type of Assistance Qualifies?

Eligible services generally include assistance with:

✔ Personal hygiene (bathing, dressing)
✔ Feeding
✔ Mobility support
✔ Administering medication
✔ Supervisory care due to cognitive impairment
✔ In-home personal support

Care may be provided:

• In the individual’s home
• In a specialized care residence
• Through a professional care agency

🔹 Who Can Provide the Care?

The caregiver may be:

✔ A hired caregiver
✔ A professional agency
✔ An independent support worker

The caregiver cannot be:

❌ Your spouse
❌ A person under 18 years old

Valid receipts must include the caregiver’s name, address, and identification details.

🔹 Who Can Claim the Expense?

Attendant care expenses may be claimed for:

✔ Yourself
✔ Your spouse or common-law partner
✔ Your children
✔ Other eligible dependants

In many cases, expanded rules apply if the individual qualifies for the Disability Tax Credit (DTC).

🔹 How Is It Claimed?

Attendant care expenses are included as medical expenses on the T1 return:

• Line 33099 (for yourself, spouse, and minor children)
• Line 33199 (for other dependants)

Like other medical expenses, only the portion exceeding:

👉 3% of net income (or the annual CRA maximum, whichever is less)

will generate a tax credit.

🔹 How Is This Different from Other Related Expenses?

Attendant care expenses should not be confused with:

• Nursing home expenses
• Disability Supports Deduction
• Child care expenses

Each has different rules and tax treatment.

In some cases, it may be more advantageous to claim:

• Full nursing home costs
• Disability supports separately
• Or a combination of credits

Strategic planning matters.

🔹 Strategic Planning Considerations

Proper structuring may allow you to:

✔ Coordinate with the Disability Tax Credit
✔ Optimize which family member claims the expense
✔ Maximize the total household tax benefit
✔ Avoid duplication or disallowed claims

The CRA reviews these claims carefully, so documentation is critical.

🔹 Common Mistakes

❌ Claiming payments made to ineligible family members
❌ Not maintaining proper receipts
❌ Confusing attendant care with child care
❌ Failing to review interaction with DTC or other deductions

Careful reporting reduces reassessment risk.

💼 How Toro Accounting Can Help

At Toro Accounting, we:

✔ Review eligibility under CRA rules
✔ Coordinate attendant care with other disability-related credits
✔ Optimize which family member claims the expense
✔ Ensure proper documentation
✔ Reduce CRA reassessment risk

When caring for a loved one, tax planning should support your financial stability — not create uncertainty.

📞 Book a Consultation

If you or a family member are paying for attendant care and want to ensure it’s claimed correctly:

👉 Book your appointment here