Certain medical expenses, including some related to Fertility treatments, can be claimed as tax credits in Ontario to help offset costs. The Medical Expense Tax Credit (METC) allows individuals to claim a portion of their medical expenses on their tax return.
Must have been paid within any 12-month period ending in the calendar year
Must not have been already reimbursed (or is eligible to be reimbursed) by a private health insurance plan
Must be proven by supporting receipts: It is always a good idea to keep your fertility expense receipts all in one place to be prepared for tax time
When preparing to file your taxes we recommend consulting the CRA website and or, a tax professional, however please see the below general list of eligible and ineligible expenses to help you better financially plan.
Fertility Treatment Procedures: The cost incurred for fees of any fertility treatment or Assisted Reproductive Technology (ART) procedures such as ICSI, Sperm Extraction, Sperm Processing, IUI, IVF, Embryo Transfers, Egg Freezing and Sperm Freezing
Egg and/or Sperm and/or Embryo frozen storage fees: Any costs associated with cryostorage fees paid to a clinic or lab within the particular tax year
Donor Eggs and/or Sperm: Fees paid to purchase Eggs or Sperm from a donor bank or agency
Surrogacy Expenses: Any expenses incurred in Canada and are a type that would be otherwise permitted as a medical expense of the individual
Related Medications: Prescribed medications (with a DIN #) necessary for fertility treatment. Please note, full or partial reimbursed expenses that are eligible under a private health plan are not eligible, however you may claim the uncovered portion.
Needles and Syringes: Costs associated with purchasing materials needed to administer (prescribed) medications
Consultation Fees: Fees paid for medical consultations related to fertility treatments
Medical Tests: Necessary medical and laboratory tests associated with fertility treatment procedures that aren’t OHIP covered
Clinical Fees: If the fertility treatment procedure involves use of clinical facilities, these expenses can be claimed
Travel Expenses: In some cases, if you must travel more than 40 km (one way) from your home for fertility treatments, related travel expenses such as gas, mileage, taxis, bus, train, meals and accommodation, may qualify. Keep all of your receipts!
Allied Health Practitioner Fees: In Ontario, the METC allows fertility treatment related expenses from certain allied health professional expenses such as naturopaths, chiropractors, acupuncturists, social workers and psychologists. For a full list of inclusions by province click here.
Over-the-Counter Medications: Medications that are not prescribed, even if they are recommended for fertility treatment, are generally not eligible
Non-Medical Allied Health Practitioner Services: Services like acupuncture or massages, unless prescribed as a necessary part of the fertility treatment, typically are not eligible
Insurance Premiums: Payments for health insurance plans that cover fertility treatments are usually not eligible as a direct medical expense
Cosmetic Procedures: Any procedures or treatments that are cosmetic in nature, even if related to fertility treatments, are excluded
Vitamins and Supplements: Unless prescribed by a doctor for a specific medical condition related to IVF, these are typically not eligible
General Health Services: Gym memberships, personal training, or general health services, even if beneficial to overall fertility, are not eligible
Calculating the expected savings from the Medical Expense Tax Credit (METC) for fertility treatments in Canada involves several variables, including the total amount of eligible medical expenses, your net income, and the specific tax credit rate. Here's a general way to estimate the potential savings:
Calculate Your Total Eligible Medical Expenses: Add up all the eligible fertility-related expenses for the tax year as detailed in the list above.
Determine the Threshold: The METC is calculated as a percentage of your eligible expenses that exceed the lesser of 3% of your net income or a specific threshold amount set by the Canada Revenue Agency (CRA). For the 2023 tax year, this threshold is CAD 2,479.
Apply the Threshold: Subtract the lesser of 3% of your net income or the threshold amount from your total eligible medical expenses. The result is the amount you can claim for the METC.
Calculate the Tax Credit: Multiply the amount from step 3 by the lowest federal tax rate (15% as of 2023). This gives you the federal tax credit amount. Remember, there may also be a provincial tax credit, which varies depending on your province of residence.
Suppose your net income is CAD 50,000, and your total eligible fertility-related medical expenses are CAD 10,000.
The threshold would be the lesser of 3% of your net income (CAD 1,500) or the CRA's threshold amount (CAD 2,479), which is CAD 1,500 in this case.
Subtract CAD 1,500 from your total expenses (CAD 10,000 - CAD 1,500 = CAD 8,500).
Multiply CAD 8,500 by 15% to get the federal tax credit amount (CAD 8,500 x 15% = CAD 1,275).
In this example, your estimated tax credit would be CAD 1,275. This is a non-refundable credit, meaning it can reduce your federal tax to zero, but you won't get a refund for any excess amount.
Remember, this is a simplified example. The actual calculation might be more complex depending on your specific situation.
Eligible Expenses: Be sure to check the eligible expenses list provided in the information on this page.
Receipts and Documentation: Keep thorough records and receipts of all medical expenses related to IVF treatments. Documentation should be detailed and include information such as the date of payment, the type of service, and the provider.
Understanding the Tax Code: Familiarize yourself with the specific provisions of the Ontario tax code related to medical expenses. The Canada Revenue Agency (CRA) provides guidelines on what can be claimed under the METC.
Consult a Professional: Tax laws can be complex, and their application can vary based on individual circumstances. It's advisable to consult with a tax professional or an accountant who is knowledgeable about medical expense claims.
Filing Your Tax Return: When filing your tax return, include your fertility-related medical expenses under the medical expense deduction section. Ensure that you're following the current year's guidelines for claiming these expenses.
Timing of Expenses: The METC can be claimed for expenses paid within any 12-month period ending in the taxation year and not claimed the previous year. Plan your medical expenses accordingly.
Income Thresholds: Be aware that the METC is subject to an income threshold. Only expenses exceeding the lesser of a certain percentage of your net income or a set base amount can be claimed.
CRA Review: Be prepared for the possibility of the CRA reviewing your claim. Having your documentation organized and readily available will be essential.
Remember, tax regulations can change, and it's important to have the most current information. Always refer to the latest guidelines provided by the CRA or consult with a tax expert for advice specific to your situation.