2010 Federal Tax Budget - Medical Expense Tax Credit CHANGE

[Chicago]

Leave it to the wisdom of our government to take away the only opportunity we had of any financial reimbursement for our Lap Band Surgery. Below is an extract from the Federal Budget changes announced yesterday; it is my understanding that Lap Band surgery is deemed cosmetic and if my understanding is correct, Lap Band surgery would not longer be admissable as a medical expense tax credit!

Medical Expense Tax Credit – Purely Cosmetic Procedures
The Medical Expense Tax Credit provides tax recognition for above-average medical and disability-related expenses incurred by individuals. For 2010, the Medical Expense Tax Credit reduces the federal tax of a claimant by 15 per cent of eligible unreimbursed medical expenses in excess of the lesser of $2,024 and three per cent of net income.

An expense is generally eligible to be claimed under the Medical Expense Tax Credit if it is directly related to a disability or a medical condition. An expense is not generally intended to be eligible if it is ordinarily incurred by persons without a disability or a medical condition or has a substantial element of personal consumption and choice.

To ensure consistency with the intent of the Medical Expense Tax Credit, Budget 2010 proposes that expenses incurred for purely cosmetic procedures (including related services and other expenses such as travel) be ineligible to be claimed under the Medical Expense Tax Credit. This generally includes surgical and non-surgical procedures purely aimed at enhancing one's appearance such as liposuction, hair replacement procedures, botulinum toxin injections, and teeth whitening.

A cosmetic procedure, including those identified above, will continue to qualify for the Medical Expense Tax Credit if it is required for medical or reconstructive purposes, such as surgery to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.

The proposed changes will make the tax treatment of purely cosmetic procedures consistent with that in other jurisdictions, such as the United States, the United Kingdom and Québec.

This measure will apply to expenses incurred after March 4, 2010.

[Tracey112205]

Obesity is a medical reason to have surgery and I am not sure they could exclude it. They have a huge fight on obesity so I would still put it through and let them question it.

[suehilton]

Also, pull the information on the lap band as a proven treatment for Type 2 diabetes.... There is an article somewhere on here on that - I think in SWLC news?

[MagsNMe]

Any of us that are currently banded will have no issue on claiming, as the expenditure was in prior tax year. So, the exposure becomes if you are out of province and paying for fills/de-fills.

I would, however, tend to agree that they'd have quite a fight on their hands, and that a medical opinion recommending the surgery, particularly for those with co-mobidities, would be something they could not fight reasonably. That would apply to breast reduction surgeries which relate to back problems as well, that sort of thing. Given the wording, it would be pretty difficult to deny WLS, as it is generally recognized as non-cosmetic in nature. Further, there is significant pressure being brought to bear on provinces to provide the surgery, due to the obesity issues which are growing daily. Although in the article I skimmed on that, they noted that AB does pay for the surgery, they did not note the waiting list was as long as the average life span.

So, I'm confident that it could be claimed, but, if someone were in the position of needing to know before hand, unfortunately, Rev Can is the only one who can actually offer an opinion, and it's not binding upon them, I don't believe.

[bro-man]

just makes me mad

[Donna]

Why not ask the clinic to look into this concern, frankly I doubt that the lap-band would be disallowed as an expense nor the fills as it is for weight loss.

[onmyway]

well I am ok for the lap band surgery as I had it in 09, but what about the boob lift and tummy tuck I will need things and cruising south on me as we speak!

[Donna]

Not sure about those but have your doc document that you get rashes, etc. for coverage. Plus have him/her add that it has caused you emotional distress.

[onmyway]

Donna, I like the way you think!!!!

[thundercloud]

Anyone who has the lap band procedure is normally considered morbidly obese...which is a documented medical condition...along with the host of other conditions that result from obesity.

The news release says..."An expense is generally eligible to be claimed under the Medical Expense Tax Credit if it is directly related to a disability or a medical condition"...and that it is not normally sought by people without a disability or medical condition....

I dont think there is any need for concern.....the tummy tuck afterwards may be an issue but not the lapband procedure itself......

[colourfulwings]

If I got the operation in July 2008, do you think I could qualify for this tax credit, or is it for new operations only?

Thanks for your help.

[Tracey112205]

You just claim it on your income tax under medical expenses. This is not a new deduction, they have only made changes to what can be claimed starting in 2010. Perhaps your tax guy already claimed it for you. If you didn't claim it, you can file an adjustment with CRA.

[Lei]

I would go back and look at the qualifications for gastric bypass. If you qualify for that it would be hard to deny you needed lap-band as a medical expense. Plus, you saved the health care system a lot of $ by paying for it yourself! However, if you do not qualify, they may have you there.

I think (Do not quote me) it is a BMI over 35 with co-morbitities or a BMI over 40.

My claim went through fine so far. Crossing my fingers.