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Tax Credit for COVID-19 Tests and Hotel Quarantine

Tax Credit for COVID-19 Tests and Hotel Quarantine


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Tax Credit for COVID-19 Tests and Hotel Quarantine


Date:
May 15, 2021
Source: Tax Interpretations

CRA was asked whether the cost of COVID-19 tests and the mandatory three night stay at a government-authorized hotel for travelers would be eligible as a medical expense for the medical expense tax credit (METC).

COVID-19 Tests

It is the CRA’s view that amounts paid for a COVID-19 test would qualify for the METC under paragraph 118.2(2)(o) of the Act if all the requirements in that paragraph are met, including the condition that the test be prescribed by a medical practitioner.

Hotel Stay While Awaiting Test Results

Amounts paid to comply with a three-day government-imposed stay at a government-authorized hotel do not meet any of the specific circumstances mentioned above. Therefore, such amounts are not eligible medical expenses for purposes of the METC.

Click here to read the full article: https://taxinterpretations.com/cra/severed-letters/2021-0879911e5