Nice addition this year and a nice improvement over last year. If possible could we have another section added for reimbursements received that subtracts from “Total allowable expenses”. I am not sure about other areas but in northern Ontario there are travel grants which the claim must be reduced by.
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As an FYI, I have already reported that optimization is only looking at medical expenses and not medical travel expenses. If you are only entering a calendar year, no issues but if you have carry-forwards from 2015, the ‘optimized’ result does not consider the travel expenses. I entered the travel amounts on the medical screen for one client to find the optimal period. Then I used an override on the dates and deleted the travel costs from the medical screen using only the medical travel info. The tax reduction was about $250. I understand that addressing this on the drawing board.
I have always used a spreadsheet template in the past for my calculations for medical travel. A couple of items I list as well as the information you already have on the sheet is the Destination (City) and the Particulars (Doctor, Hospital, etc). Just hoping you can add a few more fields so I could leave my spreadsheet behind.
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Travel expenses amount for other dependants entered on the “Travel expenses for medical care Worksheet” does not show up any where on the “Medical expenses Worksheet” although the amount does end up in the total “Medical expenses for other dependants”.
Also noticed - it appears if the only expenses entered are for the dependant it doesn’t trigger a billing amount from the price options.
Claiming only medical travel for spouse, Taxcycle posted it to ‘Total medical expenses for other dependents’. I reentered the amount under ‘Travel expenses for medical care’ resulting in an override but the previous amount below automatically zeroed out. Removed the override and now all is as it should be. The medical travel claim was added to premiums for a private health service plan.
Could we default the return date to the same date as the start date? Even if the actual return date is a few days later, using the ‘+’ is faster than starting over. Having it pre-populate, which is the case most of the time, would be an even bigger time saver. 8)
I am NOT looking for an override when the date is not the same as the start date.
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We have a local (small town) organization that has volunteers driving people to the big city for medical appointments. The organization asks that the driver be provided with a meal, and they suggest an additional amount be paid to the driver based on the location of the medical appointment in order to cover the vehicle costs.
I Know some drivers who refuse to accept payment, and depending on the time of the appointment, also forgo the meal.
I now have a client wanting to claim the $30 paid to the driver and find I either have to override*‘Expenses claimed’ or enter the amount under ‘Public transport fees’.
Like others, I am not a fan of overrides nor do I want to explain to CRA rep why I am claiming Public transit fees from Three Hills to a major centre. Those services don’t exist. Its been years since we had any kind of bus service to/from Three Hills.
I find that some CRA staff think you lied when a number is in the wrong field.Therefore could we add another or simply call it 'other transportation costs?
Do these drivers provide a receipt? If no receipt, how is this going to be substantiated during a review?
Also, do these drivers declare the income?
That issue occurred to me after I posted. I’ll check with my client next week.
To the best of my knowledge CRA requires either the Kms and Meals rates or the actual cost for the patient.
If the patient requires a driver and/or a meal, then there must be accompanying documentation.
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Medical reason for travel. Usually I quick note from the doctor on a prescription pad will do as long at the medical travel meals criteria is met.
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Reason for the driver. Usually I quick note from the doctor on a prescription pad pad will do as long at the medical travel meals criteria is met.
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Reason for the meal. I use a km log with trip start and end dates an times. Usually the first two meals of the day are not covered. If meals are covered for a medical travel companion, then a medical practitioner cover letter or prescription pad note will suffice to prove the requirement for the travel companion.
Note - additional options for those with CRA Disability Tax Credit Certificate and Northern Region.
Travel expenses
This section explains which travel expenses you can claim as medical expenses.
Expenses you can claim
To claim transportation and travel expenses, the following conditions must be met:
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substantially equivalent medical services were not available near your home;
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you took a reasonably direct travelling route; and
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it is reasonable, under the circumstances, for you to have travelled to that place for those medical services.
substantially equivalent medical services were not available near your home;
you took a reasonably direct travelling route; and
it is reasonable, under the circumstances, for you to have travelled to that place for those medical services.
If a medical practitioner certifies in writing that you were not able to travel alone to get medical services, you can also claim the transportation and travel expenses of an attendant.
If you have travel expenses related to medical services and you also qualify for northern residents deductions (line 255 of your tax return), you may be able to choose how to claim your expenses. For more information, see Form T2222, Northern Residents Deductions.
Note - For all expenses, you can only claim the part of the expense that you have not been and will not be reimbursed for. However, you can claim all of the expense if the reimbursement is included in your income (such as a benefit shown on a T4, Statement of Remuneration Paid, slip) and you did not deduct it anywhere else on your tax return.
At least 40 kilometres -
If you had to travel at least 40 kilometres (one way) from your home to get medical services, you may be able to claim the public transportation expenses you paid (for example, taxis, bus, or train) as medical expenses. Where public transportation is not readily available, you may be able to claim vehicle expenses.
At least 80 kilometres -
If you had to travel at least 80 kilometres (one way) from your home to get medical services, you may be able to claim accommodation, meal, and parking expenses in addition to your transportation expenses as medical expenses. This may include travelling outside Canada.
Meal and vehicle expenses
You can choose to use the detailed or simplified method for calculating meal and vehicle expenses. If you use the detailed method, you have to keep all receipts and records for your 12-month period.
For more information and to find out about the rates used to calculate these travel expenses, go to Meal and vehicle rates used to calculate travel expenses for 2016 and previous years or call our Tax Information Phone Service at 1-800-267-6999.
Accommodations -
You must keep receipts for all accommodation expenses and you must be able to show that the amount paid for accommodation is necessary because of the distance travelled and your medical condition. Claim the amount for accommodation as shown on your receipts.
Expenses you cannot claim -
If you traveled less than 40 kilometres from your home to get medical services, you cannot claim travel expenses as medical expenses. You also cannot claim travel expenses if you travel only to pick up a device or medication.
Example 1
Paul lives in St-Hyacinthe and had to travel over 40 kilometres one way (but less than 80 kilometres) to Montréal to get medical services because similar services were not available within 40 kilometres of his home. He had to use his vehicle because no public transportation was readily available.
Paul can claim his vehicle expenses. He can choose the detailed or simplified method to calculate the amount to claim on his tax return.
Example 2
Maria had to travel with her son Michael from Sydney to Halifax (over 80 kilometres one way) to get medical services for herself. Maria’s doctor gave her a letter certifying that she was not able to travel without an attendant.
Since similar medical services were not available near her home, Maria took a direct travelling route, and it was reasonable, under the circumstances, for her to travel to Halifax to get medical services.
The day after they arrived in Halifax, Maria checked into the hospital for surgery and had to stay for two weeks.
Michael stayed in a hotel nearby and during the day, helped her with meals and personal care at the hospital. Michael drove his mother back to Sydney afterwards.
Maria can claim all reasonable travel expenses for herself and her son while en route, to and from Halifax and for the two-week period of medical services in Halifax.
Example 3
Jennifer had to travel from Prince Rupert to Vancouver (over 80 kilometres one way) to get medical services. Her husband Stephen drove her there. Jennifer stayed in the hospital in Vancouver for three weeks but Stephen drove back to Prince Rupert after dropping her off at the hospital. Jennifer’s doctor gave her a letter certifying that she was not able to travel without an attendant.
Since similar medical services were not available near her home, Jennifer took a direct travelling route, and it was reasonable, under the circumstances, for her to travel to Vancouver to get medical services.
Stephen came to visit Jennifer once during her three-week stay in the hospital. When Jennifer was ready to go home, Stephen drove to Vancouver to take her home.
Jennifer can claim reasonable travel expenses for herself and her husband for the trip from Prince Rupert to Vancouver and then for the drive back home. However, neither Jennifer nor Stephen can claim any expenses for the trip Stephen made to visit Jennifer in the hospital.
Example 4
John had to travel from Winnipeg to Germany (over 80 kilometres one way) to get medical services. He flew there and back, and stayed at a hotel for one week while he received the services from a medical practitioner.
Since similar medical services were not available near his home, John took a direct travelling route, and it was reasonable, under the circumstances, for him to travel to Germany to get medical services.
John can claim all reasonable travel expenses for himself while en route, to and from Germany and for the one week period of medical services in Germany.
I’ve had CRA request a letter from the doctor explaining the reason for the medical travel but I’ve never had them ask for a note explaining the reason for a meal. I think that would be obvious and not something that needs a doctor’s note to explain or substantiate. I haven’t seen that requirement in CRA’s documentation.
Medical travel meals for patient and companion.
I have one client who claims medical travel regularly. I had a lot of grief with the medical travel claims for this client. Now I simply run a medical trip log similar to the trucker log and claim the associated meals rate per the simplified method.
Each and every year I include a summary of her medical history, the reason for those trips, a cover letter signed by her doctor, and the reason she needs a travel companion for her longer medical trips.
Her case is somewhat complex as she has several medical conditions. So I note which condition is being treated and why it could not be treated locally. Some of the these conditions require surgical intervention which, on the surface without medical knowledge, would not appear to require a companion. Regardless of how many times we have submitted this information, she is routinely flagged for post assessment review each and every year.