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).
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.