Celiac disease – Medical expense

Incremental (additional) cost of Gluten-Free (GF) products now an eligible medical expense on T1 individual tax return

Individuals who suffer from celiac disease (gluten intolerance) are entitled to claim the incremental costs of purchasing gluten-free (GF) products as a medical expense for the 2003 and subsequent tax years.

These individuals are not, however, entitled to claim the Disability tax credit (line 316) for the “inordinate” amount of time it takes to shop for or prepare GF products.

Who can claim the incremental cost of GF products?

Individuals, who have a certificate from a medical practitioner that states they require a GF diet because of celiac disease can claim the incremental cost of GF products as an eligible medical expense.

What is the “incremental cost”?

The incremental cost is the increased cost of purchasing a GF product as compared to the cost of a similar non-GF product. It is calculated by subtracting the cost of a non-GF product from the cost of a GF product. The calculation is shown below in the sample summary.

What items are eligible?

• Generally, the food items are limited to those produced and marketed specifically for GF diets.
  Such items include, but are not limited to, GF bread, bagels, muffins, and cereals.

• Intermediate items will also be allowed where the celiac uses the items to make GF products for their exclusive use.
  These include, but are not limited to, rice flour, GF spices, etc.

What if there are several people consuming the GF products?

If several people consume the products, only the costs related to the part of the product consumed by the individual with celiac disease are to be used in calculating the medical expense tax credit.

What documents do I need to support a claim for the medical expense tax credit?

The Canada Revenue Agency (CRA) is responsible for administering the new medical expense. As with all claims, receipts should be available on request by the CRA. A request for supporting documents could be made before or after the return has been assessed, so it is important to keep the following information available:

• a letter from the medical practitioner confirming the individual suffers from celiac desease and requires GF products as a result of that disease;

• a summary of each item purchased during the 12-month period for which expenses are being claimed (a sample summary is shown below); and

• a receipt to support the cost shown in column (4) of each GF product or intermediate product claimed.

I have Celiac disease. Can I apply for the Disability Tax Credit (DTC) for the 2001 and 2002 tax years?

Individuals who have Celiac disease or another severe dietary restriction and who take an inordinate amount of time to identify, find, shop, buy or prepare food may be eligible for the DTC, but only for the 2001 and 2002 tax years. A change in the legislation effective 2003 limits feeding to the actual act of feeding oneself and the normal time it takes to prepare the food. (Also effective 2003, individuals who suffer from Celiac disease (gluten intolerance) can claim as a medical expense the increased costs associated with buying gluten-free products.)

If you believe you are eligible for the DTC for 2001 and 2002, have your doctor provide a description of your dietary restriction and the effects of your impairment, as they relate to the amount of time that you require to find, buy and prepare food that you can safely eat, on page 9 of the form T2201, Disability Tax Credit Certificate. Your doctor also needs to indicate that the impairment occurred during the 2001 and 2002 years.

For other topics of interest to people with disabilities, visit our People with disabilities page.