Yes, drug rehab expenses may be tax deductible in Canada if they meet certain conditions. The Canadian government allows for medical expenses to be claimed as tax deductions, and drug rehab may qualify as a medical expense.
To be eligible for a medical expense tax deduction, the expenses must be incurred for medical or dental services, prescription drugs, or other medical supplies or equipment. Additionally, the expenses must have been paid in the taxation year by the taxpayer for themselves, their spouse or common-law partner, or their dependents. The total amount of eligible expenses for the year must also exceed the lesser of 3% of the individual’s net income or a fixed dollar amount (which varies depending on the tax year).
To claim drug rehab expenses as a tax deduction, the individual must have a written prescription or referral from a medical professional. The expenses must also be incurred at a licensed medical facility or by a licensed medical practitioner. The portion of expenses that exceeds the threshold can be claimed as a tax deduction on the individual’s tax return.
It’s recommended to consult with a tax professional or accountant to determine if drug rehab expenses qualify for a tax deduction and how to properly claim the deduction on your tax return in Canada.