Tax tip: Tax relief for medical treatment travel

“If you have to travel out of town for medical treatment, your transportation costs may offer some welcome tax relief, if you meet certain requirements,” advises Chartered Accountant Scott Conner, Senior Tax Manager, BDO Dunwoody LLP in Huntsville.

“For your expenses to qualify, it must be deemed reasonable for you to travel away from your community to obtain the medical services. The one-way travel distance must be at least 40 kilometres, the route must be reasonably direct, and substantially similar services cannot be available locally. The flat rate travel allowance in Ontario was been bumped to 50.5 cents per km for 2005.”

“Retirees in more rural communities may often have to travel several hundred kilometres for certain dental and medical specialists. These types of travel costs are usually out-of- pocket but, thanks to these income tax rules, some people may qualify for the tax break,” says Conner.

For further information about taxes, contact a Chartered Accountant.

Brought to you by the Institute of Chartered Accountants of Ontario.