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Private ABA Therapy a Medical Expense?

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  • Apr 7th, 2016 7:38 pm
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[OP]
Member
Apr 4, 2013
252 posts
37 upvotes
Milton

Private ABA Therapy a Medical Expense?

Apologies if this is not the right place to post this question. I've looked online and couldn't find a conclusive answer, so would appreciate if someone knows.

Our son was diagnosed with autism in April of 2015. We placed him on the government wait lists for both Applied Behavior Analysis therapy and Intensive Behavioural Intervention therapy. Knowing that these wait lists are incredibly long we decided to engage a private ABA therapist for 4 hours a week. The cost of this private therapy is very high (Thousands of dollars spent last year) and I was wondering if it would be eligible as a medical expense within our tax returns to at least be able to claim back a tax credit of 15% (Residence is Ontario)?

TIA
8 replies
Deal Addict
Feb 5, 2009
2399 posts
360 upvotes
Some medical expenses only qualify if the person is eligible for the disability tax credit. I've never looked into ABA or IBI expenses, but I would imagine if they are claimable it would only be for such people.

So I guess to answer your question with a question: Have you submitted a T2201 to the CRA (and was it accepted)?
Deal Fanatic
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Jan 27, 2007
5079 posts
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Peterborough
GSRee wrote: Some medical expenses only qualify if the person is eligible for the disability tax credit. I've never looked into ABA or IBI expenses, but I would imagine if they are claimable it would only be for such people.

So I guess to answer your question with a question: Have you submitted a T2201 to the CRA (and was it accepted)?
This is probably correct. Chech out personalized therapy plan and therapy plan on the CRA website.
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[OP]
Member
Apr 4, 2013
252 posts
37 upvotes
Milton
dutchca wrote: This is probably correct. Chech out personalized therapy plan and therapy plan on the CRA website.
Yes, our son was found eligible by the CRA for the DTC based on the T2201 that was completed by the psychologist that did the diagnostics assessment and concluded that he meets criteria for a diagnosis of Autism Spectrum Disorder with accompanying Language Impairment
Deal Addict
Feb 5, 2009
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sfanous wrote: Yes, our son was found eligible by the CRA for the DTC based on the T2201 that was completed by the psychologist that did the diagnostics assessment and concluded that he meets criteria for a diagnosis of Autism Spectrum Disorder with accompanying Language Impairment
That's a good first step. http://www.autismontario.com/client/aso ... enDocument indicates it's a grey area on whether ABA therapy can be claimed, so assuming your program is supervised by a psychologist, and you can get the documentation they suggest, it might be worth trying.

Don't forget some portion of your medical expenses don't count (3% of your net income, or $2000 or so, whichever is less), so depending on your exact situation it may not be worth the potential hassle. For example if your expenses are $3000 and you make $60,000 net then 3% of that is $1800, which you subtract from $3000 to get $1200, and then your refund is 15% of that, so only $180 back in your pocket. Of course if your income is lower or your expenses are higher then it might make more sense to submit the claim.

Are you getting the CDB? It should have been automatic if you were getting the CCTB/UCCB when you submitted the T2201. Depending on income levels that can be worth up to $2700 or so per year (again using a net income of $60,000 the CDB would be around $2400 per year).
[OP]
Member
Apr 4, 2013
252 posts
37 upvotes
Milton
GSRee wrote: That's a good first step. http://www.autismontario.com/client/aso ... enDocument indicates it's a grey area on whether ABA therapy can be claimed, so assuming your program is supervised by a psychologist, and you can get the documentation they suggest, it might be worth trying.
That is mainly the document I have read and why I say it's inconclusive.
GSRee wrote: Don't forget some portion of your medical expenses don't count (3% of your net income, or $2000 or so, whichever is less), so depending on your exact situation it may not be worth the potential hassle. For example if your expenses are $3000 and you make $60,000 net then 3% of that is $1800, which you subtract from $3000 to get $1200, and then your refund is 15% of that, so only $180 back in your pocket. Of course if your income is lower or your expenses are higher then it might make more sense to submit the claim.
I hear you and unless I'm 100% sure I can claim them as medical expenses I won't claim them. I'd rather be a few $ short than have the CRA question my return and possibly start an audit.
GSRee wrote: Are you getting the CDB? It should have been automatic if you were getting the CCTB/UCCB when you submitted the T2201. Depending on income levels that can be worth up to $2700 or so per year (again using a net income of $60,000 the CDB would be around $2400 per year).
Yes, we are getting the CDB and were able to amend all our previous tax returns to claim the DTC.
Deal Addict
Nov 17, 2004
2907 posts
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The requirement is that your child has an official diagnosis of ASD and that his ABA or IBI program is supervised by a psychologist, psychiatrist, or medical doctor.

The best way to prevent an audit is by getting your family doctor to write you a letter (you'll most likely have to pay for it) stating that they were aware that your child was receiving therapy and that they were receiving periodic updates regarding the therapy.
Deal Addict
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Feb 23, 2004
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Calgary
How to apply the dstor?
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