Personalized Therapy Plan

Is a personalized therapy plan CRA eligible in Canada?

Conditionally. Salaries and wages paid for designing a personalized therapy plan are CRA-eligible medical expenses when certain conditions are met, and can be reimbursed through your HSA. The person must be eligible for the Disability Tax Credit (DTC), and the plan must be prescribed and supervised by a qualifying practitioner.

Conditions for Eligibility

The plan must be designed for a person who is eligible for the Disability Tax Credit (DTC), and the payment must be made to someone who is in the business of providing such services to unrelated persons.

The therapy must be prescribed and supervised by one of the following:

• A psychologist, medical doctor, or nurse practitioner (for expenses incurred after September 7, 2017) — for a mental impairment
• An occupational therapist, medical doctor, or nurse practitioner (for expenses incurred after September 7, 2017) — for a physical impairment

The plan must also meet one of the following conditions:

1. Be needed to obtain public funding for specialized therapy; or
2. Be prescribed by a psychologist, medical doctor, or nurse practitioner — for a mental impairment; or
3. Be prescribed by an occupational therapist, medical doctor, or nurse practitioner — for a physical impairment

What Qualifies

• Salaries and wages paid to a person in the business of designing personalized therapy plans for unrelated clients, where the plan is for a DTC-eligible person
• Plans for mental impairments prescribed and supervised by a psychologist, medical doctor, or nurse practitioner
• Plans for physical impairments prescribed and supervised by an occupational therapist, medical doctor, or nurse practitioner
• Plans required to access public funding for specialized therapy

What Does Not Qualify

• Generic wellness or fitness programs not prescribed for a specific medical condition
• Plans designed for a person who does not qualify for the Disability Tax Credit
• Payments to a person who is not in the business of providing these services to unrelated individuals

Frequently Asked Questions

Is a personalized therapy plan CRA eligible?

Conditionally. These expenses qualify under paragraph 118.2(2)(l.92) of the Income Tax Act. The plan must be for a DTC-eligible person, paid to a qualifying service provider, prescribed and supervised by an eligible practitioner, and meet one of the three plan conditions.

Can I claim a personalized therapy plan through my HSA?

Yes, when all conditions are met. The DTC certificate (T2201), the prescription, and receipts from the service provider should be retained to support the claim.

Do I need a T2201 form?

Yes. The person for whom the plan is designed must be eligible for the Disability Tax Credit, which requires an approved T2201 on file.

Source

Based on the CRA's official eligible medical expenses list and Income Tax Folio S1-F1-C1, "Individualized therapy plan".