With respect to most families I am aware of out here, the therapist and

consulting costs have been approved as medical expenses. A "prescription"

from your GP is generally all that is required.

Resolution 14 of the February 1999 federal budget will alleviate your

problems with respect to therapy costs as long as your grandson qualifies for

the disability tax credit and the therapy is "prescribed" by a medical

practitioner registered to practice in the province of Ontario:

"That, for the 1999 and subsequent taxation years, there be added to

the list of expenses eligible for the medical expense tax credit.....

(b) remuneration paid for therapy administered to an individual in

respect of whom the disability tax credit may be claimed if (i) the therapy

is prescribed by, and administered under the general supervision of (A) a

medical doctor or a psychologist in the case of mental impairment, and (B) a

medical doctor or occupational therapist, in the case of a physical

impairment

(c) remuneration paid for tutoring services that are rendered to,

and are supplementary to the primary education of, an individual who (i) has

a learning disability or a mental impairment, and (ii) has been certified by

a medical practitioner to be a person who, because of that disability or

impairment, requires those services"

This change is very important for individuals with disabilities particularly

since therapy is not defined, as long as it is under the general supervision

of a medical doctor or psychologist. I believe this clearly spells out

coverage for ABA therapy as well as other therapies. The ability to claim

for tutoring services only requires that the individual be medically

certified with a learning disability which would include a number of

disorders outside the Autism spectrum as well. Tutoring services is also

not defined and therefore could be interpreted quite broadly.

What this basically requires is a letter from your GP "prescribing" this

treatment.

The other way of handling the medical claims is to self-fund a private

medical plan. The plan invoices your employer for premiums and the employer

reduces your gross salary by the amount of the premium. Your T-4 and

deductions are based upon a lower gross salary and your employer does not

issue a T-4 supplemental for the premiums because they are an allowable

deduction for the company under the income tax act. You issue the invoices

to the plan for your therapists etc. and the plan pays them. They take a

percentage for administration, usually 10%.

As I mentioned earlier, there are two ways to claim medical expenses and the

first we have discussed. The second method, and by far the most cost

effective is utilizing a private medical plan. Premiums for a private

health services plan are deductible as en expense for employers and are not

considered to be a taxable benefit to the employee. Therefore, consider

this:

- Scenario 1 - An employee makes $4,000 per month. This person pays

$1,000/month for their medical expenses out of their take home pay after

deductions. This $12,000 results in a total tax credit of $2,684 at 17% tax

credit after $1,440 deduction ($48,000 x 3%) and payment of $12,000 in

expenses.

* Scenario 2 - An employee has their employer pay $1,000/month premium

to a private plan. The employee's deductions are now calculated on

$3,000/month. The plan, which generally charges 10% service charge, pays

back $900/month of your medical expenses to you and your take home pay is

only reduced by $612/month. You don't include anything on your tax return

as this reduction occurs at source. Your employer pays less EI and CPP as

their payments are based upon the size of your deductions.

The tax reduction alone in Scenario 2 is $4,787 representing over $2,000 in

tax savings and approximately $2,500 in additional annual recovered medical

costs. There are a number of individuals who can set up this plan and it

works very well and very simply. I can probably refer you to someone if you

need assistance.

If you have any other questions please feel free to me e-mail me at

"dquerns@ise.bc.ca" or at "kmq22@home.com".

Doug Querns, parent of two autistic boys.