When it comes to claiming medical expenses under a Health Spending Account (HSA), certain medical devices and equipment are listed as eligible under the Medical Expense Tax Credit (METC). However, not all medical equipment is included in the list, but could still be medically necessary to the patient. For these cases, the CRA has specific regulations that must be met in order to claim these items.
Eligibility Criteria for Medical Devices and Equipment
According to the CRA, under paragraph 118.2(2)(m) of the Income Tax Act, an eligible medical expense includes amounts paid for devices or equipment for use by the patient, provided that the following conditions are met:
Prescribed by a Medical Practitioner: A medical practitioner must prescribe the device or equipment specifically for the individual’s medical condition.
Not Covered Elsewhere: The device or equipment must not already be described in any other paragraphs of subsection 118.2(2) of the Income Tax Act.
Meets Additional Conditions: The device or equipment must meet any applicable conditions outlined in section 5700 of the Regulations regarding its use or reason for acquisition.
New vs. Used Equipment
One important aspect to note is that the medical device or equipment does not need to be purchased new to be eligible for the METC. Whether purchased new or used, the amount that may be claimed is based on the actual amount paid to acquire the device, up to any maximum amount specified in the Regulation.
Examples of Eligible Devices
Some common types of medical devices and equipment that may qualify under these regulations include:
Breast Pumps
Blood Pressure Monitors
Ergonomic Office Equipment
Neck or Back Pillows or Mattresses
How to Claim Eligible Medical Devices and Equipment Through Your HSA
If you are submitting a claim for a medical device or piece of equipment that is not listed on your covered items, but has been prescribed for medical reasons, ensure that you provide:
A prescription or letter from a medical practitioner, indicating the medical necessity of the device, what it is treating, and the patient name and practitioner name.
A receipt showing proof of purchase, including the amount paid and the date of purchase.
Any supporting documentation if required, such as manufacturer details or a statement confirming the condition for which the device is needed.
Understanding the eligibility of medical devices and equipment under the METC ensures that you maximize the benefits available to you through your Health Spending Account. If you have questions about a specific device or how to submit your claim, be sure to check CRA’s guidelines or reach out to our support team for assistance.