Medical expenses for procedures such as surrogacy are now eligible for tax deduction!

Sosweet waterloo
Sep 5, 2023
1 min read

Canada has introduced some remarkable changes! Medical expenses for procedures such as egg freezing, surrogacy, and in-vitro fertilization are now eligible for tax deductions!

Reproductive matters have become a pivotal concern for families today. In Canada, as women gain increasing independence and society becomes more competitive, the demand for services such as egg freezing, in-vitro fertilization, and surrogacy is on the rise. The Canada Revenue Agency has responded by incorporating the associated expenses of reproductive technologies into the Medical Expense Tax Credit (METC), allowing them to be deducted from our taxable income, thereby reducing our personal income tax burden. Let me provide some examples to help you understand which expenses can be deducted:

Medical service fees paid to specialists or hospitals (e.g., certain medical procedures typically involved in the in-vitro fertilization (IVF) process).
Prescription drugs (e.g., prescription fertility medications).
Costs associated with certain laboratory or diagnostic procedures (e.g., ultrasounds).

Following the 2022 budget changes, expenses related to fertility clinics, sperm banks, and egg banks are also eligible for deduction.

It's important to note that these expenses must be incurred in Canada, whether in private or public hospitals. In addition to keeping receipts for payment, you must also retain the name and social insurance number of the surrogate or sperm donor.

Overall, these deductions can result in significant tax savings.