Disability and Medical Expenses Glossary 

Adult Dependent (DTC Claim) – An adult family member with a disability for whom you may claim the Disability Tax Credit if you provide regular financial or custodial support during the year.

Amend via Tax Software – A correction method allowing you to adjust a previously filed return using certified tax software, typically through CRA NETFILE, if that software was used originally.

Approved T2201 Certificate – The CRA-approved Disability Tax Credit Certificate required to claim the DTC, completed and certified by a medical practitioner.

Assistive Technologies – Specialized devices and software designed to aid individuals with disabilities or medical conditions, such as voice recognition programs and talking textbooks, eligible as medical expenses if prescribed or medically necessary.

Canada Caregiver Credit (CCC) – A non-refundable tax credit available to individuals supporting a spouse, common-law partner, or dependent with a physical or mental impairment, which may be claimed alongside a DTC transfer if eligible.

Certified Service Animal Expenses – Costs related to the care and training of service animals that assist with diagnosed medical conditions, including vet care, food, and training, provided the animal is certified and performs specific functions.

Child Disability Supplement – An additional amount that may be claimed along with the base DTC for a dependent child under 18 with a qualifying disability.

Claim Period (Medical Expenses) – A 12-month period ending in the tax year for which medical expenses can be claimed; does not have to follow the calendar year, offering flexibility to maximize eligible costs.

Claiming Duplicate Expenses – A common error where the same medical expense is claimed in multiple years or by more than one taxpayer, which may lead to reassessment or denial.

Claiming Ineligible Medical Expenses – Errors involving costs that do not qualify for the tax credit, such as cosmetic procedures, over-the-counter items without prescriptions, or non-qualifying travel.

Claiming Travel Expenses (Medical) – Eligibility to deduct travel costs as medical expenses when care is unavailable locally and the distance exceeds 40 km one way; includes transportation, parking, and meals depending on distance.

Claiming Vehicle and Mileage Costs – Options for deducting medical travel vehicle expenses: the detailed method (actual costs) or simplified method (CRA per-kilometre rates), with specific conditions and documentation required.

Conditional Medical Expenses – Items and services that only qualify for the medical expense tax credit if they are prescribed or certified by a medical practitioner, such as air conditioners for severe respiratory illness or gluten-free food for celiac disease.

Coordinating DTC Claims – The process of ensuring only one family member claims the Disability Tax Credit per dependent per year to avoid duplication and reassessment.

CRA “Change My Return” Tool – An online feature within CRA My Account that allows individuals to submit corrections to prior year tax returns, including medical expense adjustments.

CRA Eligibility Rules (Medical Expenses) – The criteria an expense must meet to qualify for the medical expense tax credit: intended for diagnosis or treatment, prescribed if necessary, not reimbursed, and listed or consistent with CRA guidelines.

CRA Medical Expense Threshold – The minimum expense amount that must be exceeded to qualify for the medical expense tax credit; the lesser of 3% of net income or a fixed dollar amount set annually by the CRA.

CRA Per-Kilometre Rate (Medical Travel) – The standardized mileage rate set by the CRA for simplified vehicle expense claims, varying by province and updated annually.

Dependent Relative (Medical Claim) – A family member such as a parent, grandparent, adult child, or sibling who relies on the taxpayer for support and whose eligible medical expenses may be included in a tax return under certain conditions.

Disability Tax Credit (DTC) – A non-refundable tax credit for individuals with a severe and prolonged physical or mental impairment, which may be transferred to supporting relatives.

DTC Documentation Requirements – Records such as receipts, transfer confirmations, and agreements that support your DTC claim if reviewed by the CRA.

DTC Transfer Eligibility – The CRA's criteria for allowing the transfer of the unused portion of the Disability Tax Credit from a dependent to a supporting relative who meets support and relationship requirements.

DTC Transfer Recipient – A supporting family member eligible to receive the unused Disability Tax Credit, such as a parent, sibling, or adult child who provided financial or caregiving support during the year.

DTC Transfer Scenarios – Common situations where transferring the Disability Tax Credit applies, such as parents supporting disabled children or adult children helping low-income parents.

Eligible Dependents (DTC Transfer) – Family members such as children, parents, siblings, or grandparents who qualify for the DTC and allow the credit to be transferred if not used personally.

Eligible Medical Expenses – Out-of-pocket health-related costs prescribed by a medical practitioner, not reimbursed by insurance, and falling within the allowed claim period, such as prescriptions, dental care, and assistive devices.

Financial or Custodial Support – Ongoing assistance provided by a supporting relative to a dependent with a disability, such as covering living expenses or caregiving duties, required to claim the DTC on their behalf.

Home Modifications (Medical Claim) – Renovations to a primary residence made for medical accessibility, such as ramps, lifts, or widened doorways, which may be claimed as medical expenses if medically necessary.

Income-Based Medical Expense Limit – A calculation that restricts the amount of medical expenses claimable by requiring they exceed a specific threshold tied to the taxpayer’s income level.

Incorrect Threshold Calculation (Medical Expenses) – Mistake in determining the claimable amount due to misapplying the 3% of net income rule or the CRA’s annual fixed threshold.

Insurance Reimbursement Tracking – The requirement to deduct any portion of medical expenses reimbursed by insurance before claiming the remaining amount on a tax return.

Lesser-Known Medical Expenses – Non-traditional but eligible medical expenses recognized by the CRA, including devices, therapies, assistive technologies, and specialized services not commonly known to taxpayers.

Licensed Professional Services – Medical or therapeutic services provided by provincially recognized practitioners, such as physiotherapists, naturopaths, psychologists, or massage therapists, that may qualify for the medical expense credit.

Maximum Claim Limit (Medical Expenses) – There is no fixed maximum for eligible medical expenses for yourself, your spouse, or dependent children under 18, but limits may apply for other dependent relatives based on their income and available credits.

Medical Companion Travel Expenses – Costs associated with a required companion traveling with the patient for medical treatment, eligible when medically necessary and documented.

Medical Expense Tax Credit – A non-refundable tax credit that reduces federal and provincial taxes based on out-of-pocket medical costs exceeding a certain income-based threshold.

Medical Expense Timing Rules – CRA rules that determine when a medical expense is considered eligible for a claim, based on the date of payment and the selected 12-month claim period.

Medical Moving Expenses – In rare cases, permanent relocation for treatment qualifies as a medical expense, covering costs like moving services, travel, meals, and utility hook-ups, if medically advised and properly documented.

Missing Medical Expenses – Eligible costs that were forgotten or excluded from the original return due to lost receipts, delayed invoices, or oversight.

Moving for Medical Reasons – The act of relocating permanently to access essential medical care, eligible for expense claims only with a medical practitioner's written recommendation and qualifying documentation.

Notice of Reassessment (Medical Claim) – A document issued by the CRA after processing an amended return, showing the corrected tax calculation and any changes to the taxpayer’s refund or balance owing.

Organizing Medical Expense Claims – The process of summarizing and categorizing receipts, tracking reimbursements, and retaining original documents to support a tax credit claim.

Prescribed Items (Medical Expense Eligibility) – Products or services that qualify as medical expenses only when accompanied by a prescription or medical certification, such as cannabis, air conditioners, and specialty diets.

Shared Custody and DTC – In cases where parents share custody of a child with a disability, only one parent may claim the DTC per year; coordination is necessary to avoid errors.

Shared DTC Support Coordination – The need for family members supporting the same dependent to coordinate who will claim the DTC transfer, since only one person may do so each year.

Special Medical Services – Healthcare or diagnostic services not covered by public health insurance but eligible for the tax credit when performed by a licensed professional and deemed medically necessary.

Spousal Coordination (Medical Claims) – A strategy where spouses combine medical expenses and claim them under the lower-income partner to reduce the threshold and maximize the tax credit.

Strategic Claim Period Selection – The practice of choosing a custom 12-month window that ends in the tax year to group high-cost expenses together and maximize the medical tax credit.

Supporting Documentation (Medical Correction) – Receipts, medical prescriptions, service records, or explanatory letters required by the CRA to verify a correction to a medical expense claim.

Supporting Relative (DTC Transfer) – A qualifying family member who provides regular financial or custodial support and may claim a transferred DTC if the dependent cannot fully use it themselves.

T1 Adjustment Request (T1-ADJ) – A paper form used to formally request changes to a filed tax return, often including attachments like receipts and medical documentation.

Travel Expense Documentation (Medical) – Required records such as receipts, medical practitioner notes, appointment confirmations, and mileage logs to support claims for travel or moving expenses due to medical needs.

Travel for Medical Care – Transportation and accommodation costs incurred to access medical treatment not available locally, eligible as a medical expense if CRA mileage and lodging rules are met.