Is claiming gluten-free grocery items on my taxes worth the time & effort?

gluten free productsCanada Revenue Agency:  Medical Expenses – Gluten Free Products (1)

“Persons who suffer from celiac disease (gluten intolerance) are entitled to claim the incremental costs associated with the purchase of gluten-free (GF) products as a medical expense.”

NOTE: “Your claim must be greater than either 3% of your net income or a fixed amount that the CRA sets from year to year, whichever is less. For more information on the medical expense claim and the current year’s fixed amount.”  (2)  See ‘Line 330 and 331’ below.


incremental costWhat is the “incremental cost”?

The incremental cost is the difference in the cost of GF products compared to the cost of similar non-GF products. It is calculated by subtracting the cost of a non-GF product from the cost of a GF product (see example below).


gluten free labelsWhat 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 patient suffering from celiac disease uses the items to make GF products for their exclusive use. These include, but are not limited to, rice flour and GF spices.


Family DinnerWhat 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 person with celiac disease are to be used in calculating the medical expense tax credit.


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

If you are filing your income tax and benefit return electronically or on paper, do not send any supporting documents. However, keep the following documents in case we ask to see them at a later date:

  • a letter from a medical practitioner confirming the person suffers from celiac disease and requires GF products as a result of that disease
  • a receipt to support the cost of each GF product or intermediate product claimed
  • a summary of each item purchased during the 12-month period for which the expenses are being claimed (see example below)

gluten free products

Cost regular vs GF bread (per slice)

Example

1. Item: bread
2. Number of items purchased: 52
3. Average cost of non-GF product: $3.49
4. Average cost of GF product: $6.99
5. Incremental cost (line 4 minus line 3): $6.99 – $3.49 = $3.50
6. Amount to claim (line 5 multiplied by line 2): $3.50 x 52 = $182.00


travel expensesWhat happens if medical treatment [i.e. diagnostic testing] is not available in my hometown? (3)

  • If certain conditions are met, the CRA will allow you to claim reasonable travel expenses to get medical treatment.
  • Distance is the first factor. If you have to travel at least 40 kilometres one way from your home to the medical services establishment, you may be able to claim the cost of public transportation.
  • If public transportation is not readily available, you may be able to claim the vehicle expenses you paid.

If you had to travel at least 80 kilometres one way from your home to the medical services establishment, you may be able to claim these expenses, in addition to your transportation costs provided:

  • The same medical services cannot be available near your home.
  • You have to take a reasonably direct route to get to the medical services.
  • It should be  reasonable under the circumstances for you to have travelled to that place for those services.

How much you can claim depends on which method you use to calculate your travel expenses. With the detailed method, you keep track of all of your vehicle expenses for the year and make the claim based on the number of kilometres you drove for medical reasons versus the number you drove for other reasons. With the simplified method, you claim a per-kilometre rate for travel for medical reasons.


Which amount do you enter on your return? (4)

Gluten free tax claim line 330Gluten free tax claim line 331


Footnotes

  1. http://www.cra-arc.gc.ca/gluten-free/ (Date modified: 
  2. http://www.cra-arc.gc.ca/vdgllry/ndvdls/srs-txmsrs-pwd3-eng.html
  3. http://www.cra-arc.gc.ca/vdgllry/ndvdls/srs-txmsrs-pwd3-eng.html
  4. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330-331/menu-eng.html#whchlns
  5. Provincial or territorial non-refundable tax credit

Helpful Video Series: http://www.cra-arc.gc.ca/vdgllry/ndvdls/srs-txmsrs-pwd-eng.html?clp=ndvdls/srs-txmsrs-pwd3-eng&fmt=mp

Individual income tax and trust enquiries: Phone: 1-800-959-8281 (Canada and United States) | Hours of service and service standard

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