Written in 2019 but still quite on topic.
Thanks to my issues with my son’s Medical Credit claim, I have had an income tax quandary.
Given the initial assessment refused my son’s Medical Claim for his schooling to be a medical expense (for last tax year), I have asked for a reassessment. The bill for the initial refusal is not insignificant. However, I am hopeful that we will prevail in the end.
I owe the CRA a significant amount of money, and my taxes are due; what do I do?
First question: Do I do my taxes this year assuming my son’s schooling expenses are a medical expense or not, given the CRA has denied this for the past year? My call is that I will try to claim it this year, assuming we prevail with our re-assessment. If this thing backfires, I assume I am going to have a world more problems with the CRA, but let’s remain optimistic.
Next question, given I should be getting a refund from the CRA, should I file before I hear about the re-assessment results? If I file, with no resolution, the CRA will simply take my refund to pay my “debt” to them.
- If the reassessment ends up against my claim, I receive whatever is left from my refund, and the CRA is paid
- If the reassessment ends up for my claim, and the CRA has already taken their “payment” I must then ask for my money back, which will mean delays and more paperwork.
We decided to file and see what happens simply. Currently, my life is a bit chaotic (to say the least), so it would be better to tie off loose ends before things possibly go pear-shaped.
Better to Act Sooner
Given I may be very distracted soon by other issues, it is better to file my taxes, and let the CRA decide how things will transpire.
Medical Expense Resources
Here are a few of the articles I have written about if your child has a valid Disability Tax Certificate (DTC), how you can claim their training or schooling as a medical expense.
- Medical Expenses and Taxes
- Disabled Children School Fees Medical Credit
- Medical Tax Credit for School Costs Template
- CRA and me: Assessment Excitement
Going Pear Shaped: An English colloquialism meaning things going very wrong.