March 12, 2016

Quick Guide To Canada's Gluten-Free Tax Credit



Did you know that in Canada, there is a slight tax break available for those who need to consume gluten-free food? The Canadian Revenue Agency allows a tax deduction for the purchase of gluten-free goods. This is really helpful as we all know how ridiculously expensive the gluten-free diet can be.




Who Qualifies

  • You must be diagnosed with Celiac disease and requiring a gluten-free diet by an authorized medical practitioner 
  • You need to have a note from your physician on his or her letterhead, confirming diagnosis 
  • Total medical expense must exceed 3% of net income


How It Works


There is a fair bit of effort involved

  • Keep receipts for gluten-free items purchased throughout the year
  • You will need to calculate the incremental difference between GF and non-GF items on an item by item basis
  • This is done by subtracting the cost of a non-GF item from a GF item


Example per Canada Revenue Agency website


1. Item: bread
2. Number of items purchased: 52
3. Average cost of non-GF product: $3.49
4. Average cost of GF product: $6.99
5. Incremental cost (line 4 minus line 3): $6.99 - $3.49 = $3.50
6. Amount to claim (line 5 multiplied by line 2): $3.50 x 52 = $182.00

 

Tips



  •  Highlight the gluten-free items on your receipts or keep gluten-free purchase separate from non-GF purchases
  • Keep your receipts organized in a folder and away from the sun
  • Use a spreadsheet to itemize and calculate
  • If you add to your spreadsheet with every gluten-free grocery shop, you will save time and avoid a headache
  • Save a copy of the spreadsheet for your records
  • Be patient



2 comments

  1. Thank you for this list. I was wondering if you've spoke directly with Revenue Canada re this eligibility. I ask because my son has a rare immune condition called eosinophilic esophagitis and has a diagnosed wheat allergy (and at least 8 other diagnosed food allergies including soy,nuts, gluten, potatoes, black pepper, etc.). I called Revenue Canada as their website states only people with celiac may claim. I thought it a rather nonsensical claim since he is required medically to stay away from all wheat (and gluten). The person at Revenue Canada couldn't answer me one way or another - said the best thing I could do was "try" to get a deduction. I was curious if you'd ever spoke with Revenue Canada or had any knowledge of claim eligibility for people with wheat allergies. Thanks Eliz

    ReplyDelete
  2. Hi Eliz,
    As far as I am aware, the tax deduction is only available for those diagnosed with Celiac disease. I would suggest emailing the CRA in regards to the "try" to get a deduction suggestion. This way, if you are audited, you will have record of the CRA contacts suggestion.

    ReplyDelete

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