Fertility Treatment Tax Credit
In Ontario, individuals can claim select medical expenses, such as those for fertility treatments, as tax credits to reduce overall costs. Through the Medical Expense Tax Credit (METC), individuals can report a portion of their medical expenses on their annual tax return.
To Qualify for The METC, Medical Expenses Must Typically Adhere to The Following Guidelines:
- They must have been paid within a 12-month period that ends in the current calendar year.
- They must not have already been reimbursed or deemed eligible for reimbursement by a private health insurance plan.
- They must be supported by receipts; it is wise to keep all fertility expense receipts organized in one place for tax purposes.
Before filing your taxes, we advise referring to the CRA website or consulting a tax professional for guidance. This list of eligible and ineligible expenses can help assist you in better financial planning.
Expenses Covered by METC:
- Costs for fertility treatment procedures and assisted reproductive technology services, including ICSI, Sperm Extraction, IUI, IVF, and more
- Fees for storing frozen eggs, sperm, or embryos
- Expenses for purchasing donor eggs or sperm
- Surrogacy-related costs within Canada
- Prescription medications for fertility treatment
- Materials like needles and syringes for medication administration
- Medical consultations for fertility treatments
- Necessary tests not covered by OHIP
- Clinical facility fees for treatment procedures
- Travel expenses over 40 km one way for treatment, including gas and accommodations
- Fees for allied health practitioners like naturopaths, chiropractors, and psychologists, depending on the province
Please note that expenses covered by private health plans are not eligible for reimbursement. Keep all receipts for eligible expenses.
Calculate Your Tax Savings:
To determine your tax savings from the Medical Expense Tax Credit (METC) for fertility treatments in Canada, consider your total eligible medical expenses, net income, and the specific tax credit rate.
Follow these steps to estimate potential savings:
- Add up all eligible fertility-related expenses for the tax year.
- Determine the threshold, which is the lesser of three percent of net income or CAD $2,479 for the 2023 tax year.
- Subtract the threshold from total eligible medical expenses to find the amount eligible for the METC.
- Calculate the federal tax credit by multiplying the amount eligible for the METC by the lowest federal tax rate (15 percent in 2023). Remember to check for any provincial tax credits based on your province of residence.
Tips for Fertility Tax Credits:
- Eligible expenses: Please refer to the list of eligible expenses provided on this page.
- Receipts and documentation: Keep detailed records and receipts of all IVF-related medical expenses, including date of payment, type of service, and provider.
- Understanding the tax code: Learn about the Ontario tax code provisions for medical expenses and guidelines from the CRA.
- Consult a professional: Seek advice from a tax professional or accountant familiar with medical expense claims for help managing the complexity of tax laws.
- Filing your tax return: Include fertility-related medical expenses in the medical expense deduction section of your tax return following the current year’s guidelines.
- Timing of expenses: Plan your medical expenses within a 12-month period ending in the taxation year to claim under the METC.
- Income thresholds: Note that the METC has an income threshold, and only expenses exceeding a certain percentage of net income or set base amount can be claimed.
- CRA Review: Be prepared for the possibility of a CRA review of your claim and have organized documentation ready for verification.
Keep in mind that tax laws may change, so make sure you stay up-to-date. Make sure to check the most recent guidelines from the CRA or seek guidance from a tax professional.
