An air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation to cope with or overcome that ailment or disregulation.A device or equipment, including a replacement part, designed exclusively for use by an individual suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation, but not including an air conditioner, humidifier, dehumidifier, heat pump or heat or air exchanger.Consider the following list of prescribed medical devices and equipment from the CRA: That signed form T2200 must also be on hand.įor the self-employed who providePPE and sanitizer in the course of keeping a safe workplace for employees and customers, a tax deduction for the costs would be reasonable.Īs mentioned, individual taxpayers may also claim certain “prescribed medical costs” that arise as a result of COVID as medical expenses. In addition, the supplies must be used directly in their work and Form T2200, Declaration of Conditions of Employment, must be completed and signed by the employer.Īt tax audit time, it will be up to employees to demonstrate to CRA tax auditors that the supplies were used directly in their work, rather than just for personal use, which may be a tough task. Employees must personally pay for these costs, their contract of employment must require them to provide and pay for the supplies, and these supplies cannot be reimbursed in the future by the employer. Supplies are defined by CRA as those materials that are used directly by employees in their work and for no other purposes.

However, supplies used up in the course of employment or self-employment activities may be deductible as an employment/self-employment expense.Įmployees can deduct the cost of supplies used up in the course of their employment, when certain conditions are met. We’ll discuss some of the pandemic-related medical expenses that could be deductible later.

Under current rules, allowable medical expenses must be prescribed by a doctor or on a prescribed list of allowable expenses published by the CRA. Under current rules, individuals would not likely be able to deduct PPE and hand sanitizer using the supplies for personal use as a medical expense, unless the government directs differently in the months to come. To answer it, we have to take the perspective of 3 tax filer profiles: individuals, employees, the self-employed. It’s an important question for the times as the second wave of the pandemic rages around the world. It begs the question, will Personal Protective Equipment (PPE) and other health related costs be deductible? The answer is, it depends. Yesterday, Canada’s Chief Public Health Officer Theresa Tam announced that Canadians should be wearing triple-ply non-medical masks when in shared indoor spaces with people from outside of their immediate household, and when in close contact with others in public. Medical Expenses: Will PPE Costs be Deductible?

Medical expense deduction 2020