Claim Private School Tuition as a Medical Expense

Did you know that school tuition may be claimed as a medical expense?

If your child qualifies for the Disability Tax Credit because of a mental or physical impairment and you need the equipment, facilities, or staff specially provided by that place for persons with the same type of impairments, you may claim the entire amount as a medical expense.

If your child does not qualify for the Disability Tax Credit, all is not lost. An appropriately qualified person may certify in writing the school is necessary for the reasons listed in the previous paragraph. The appropriately qualified person may be a medical practitioner, principal of the school or the head of the institution or other place.

Save Those Summer Camp Receipts!

Summer Camps receipts may be used for the Child Care tax deduction so hang on to them!

Refresh my memory.  What is the Child Care Tax Deduction?

If you pay someone to care for your child so you can earn an income or go to school, you may be able to deduct these costs from your total income. This is often more valuable than a simple tax credit.  For more information refer to my page Child Care Expenses.

As a reminder, the lower income spouse may claim up to $11,000 per child if they qualify for the Disability Tax Credit (DTC). In addition, the normal age limit of 16 does not apply assuming the child is dependent on you or your spouse.

What summer camp receipts are eligible?

Day camps and day sports school may be claimed in their entirety towards your Child Care limit.  Overnight camps on the other hand may only be claimed up to a maximum of $275 per week, if your child qualifies for the DTC.

You may also claim caregivers providing child care services, day nursery and day child care centers.

Anything else?

Remember if someone else pays the bills (i.e. the Autism Funds Unit) you cannot claim it as an expense.

Ontario – How Bad Is It?

I dare you to read the following article and not get mad.

https://medium.com/@MikePMoffatt/one-dads-experience-raising-two-wonderful-children-on-the-spectrum-c92babddcc96

This article was written about an upper middle class family. Imagine a single parent household with two or more kids on the autism spectrum.

File A Tax Return For Your Teenager

Your teenager earns nothing so logically you do not need to file a tax return. Right? Not so fast.

We discussed in previous posts why the Registered Disability Savings Plan (RDSP) is the best way to save for your child’s future. The key element to the plan is the government grants and bonds (free money!) which is added to the account. The amount added is dependent on the family income.

If the beneficiary of the RDSP is over the age of 18, the “family net income” used to calculate the government grants/bonds is that of the beneficiary and his/her spouse. The income that will determine the grant and bond is based on the income tax return from the second preceding year. (Example: Contribution made in 2019 – net income based on the 2017 tax year.)

In other words, to ensure your child receives the maximum entitled grant and bond, file a tax return when he/she turns 17 (even though the income may be low or even non-existent) so that the grant and bond will be based on his/her low income status.

RDSP Statement of Grant Entitlement

Soon you will receive your annual Registered Disability Savings Plan (RDSP) Statement of Grant Entitlement in the mail. For those of us too tired to calculate our annual contributions, the government does it for us. Of course this assume that you have an RDSP in the first place. For those of you who do not have an RDSP, I ask why not? Are you new to the world of autism or do you not like receiving free money from the government?

The RDSP letter will show what contribution you need to make to attract the maximum grant and/or bond for 2019.

I love to hate the government, but this really is a nice touch. They are all but begging to give you money.  

You could deposit more money than required to attract the maximum grant, but for most families I recommend limiting their contributions. There is a lifetime maximum contribution limit and once that is filled, there can be no further government grants.  

You can get more information about the RDSP from my website or RDSP.com.

My 2018 RDSP Report Card

Last year, my son’s Registered Disability Savings Plan (RDSP) had a rate of return of -2.2%.

Is that bad?

No, not really. In fact it’s in line with the industry benchmark. My portfolio is based on the Canadian Couch Potato TD e-Series model portfolio . Last year, the model portfolio returned -2.1%.

It’s important to look at the long term picture. We opened the RDSP in 2013. The rate of return from then to the end of 2018 is 5.5%.

And we care because……?

The point is that anyone can manage RDSP investments without paying for a financial advisor or having any investment knowledge. All you have to do is setup a low cost portfolio (such as the one linked above), add money every year, let the government add the grants and bonds and in the long run, you will be well ahead of those who pay too much for financial advice.

How to get an iPad when you can’t afford it

How  many of you tried to buy an iPad (or other expensive device) using the 20% equipment budget from your BC Autism Funding? You had to:

  • Send in a Justification Form signed by your Consultant
  • Wait for approval
  • Buy the device
  • Submit a Reimbursement for Autism Expenses form
  • Wait for the funds from the BC government

That’s fine for those who can afford to pay upfront and wait for reimbursement, but it leaves the others in a Catch 22 situation.  The result is that the families who most need the device simply can’t purchase it.

Now there is a solution using London Drugs throughout B.C. You will need to follow these steps:

  • Get your Consultant to fill out a Justification for Equipment (JFE) form specifying the model number from London Drugs.
  • Send the form to the Autism Funding Unit (AFU).
  • Wait for the AFU to send a confirmation letter.
  • Fill out the RTP – Service Providers/Suppliers form.
  • Take the RTP and authorization letter to London Drugs and try to find a manager who knows about this program. You may have to try different locations or call London Drugs headquarters for help.
  • The manager will fill out Part B of the form and send it to the AFU.
  • The family will get a message that their computer/iPad is ready for pick up.

I have been told that the entire process will take about three months. If you have difficulty finding a London Drugs store that understands the process, I understand the Cloverdale and South Surrey stores are very accommodating.

Note that the AFU will only allow you to get a new device once every three years.  You can also expect push back if the device you select is too expensive (at least according to the AFU). How much is too expensive?  That is a good question and one that I don’t have an answer to.

Also, please do not use school as a reason for buying the device as the AFU will not approve this.  Your Consultant should be aware of the appropriate words to use.

OK, so that is all a bit exhausting and time consuming, but at least there is now an option for those that need it.