Are your services tax deductible?

Psychotherapy and counselling services may qualify as eligible medical expenses for the Canada Revenue Agency’s Medical Expense Tax Credit when they are provided by an authorized medical practitioner in the province or territory where the practitioner provides the services.

A Registered Social Worker (RSW) or Registered Psychotherapist (RP) may be an authorized medical practitioner in some provinces or territories, but eligibility is determined by the CRA’s province- and profession-specific rules. Registration alone does not necessarily make a practitioner’s services claimable in every jurisdiction.

Before claiming therapy fees, confirm that:

• The practitioner is legally authorized to practise in the province or territory where they provide the service.
• The practitioner’s professional category is listed by the CRA as an authorized medical practitioner for that jurisdiction.
• You retain an itemized receipt showing the practitioner’s name, professional designation, date of service, amount paid, and the patient’s name.
• You claim only the portion of fees that was not reimbursed through insurance or another benefit plan.

Eligible amounts are generally claimed as part of the Medical Expense Tax Credit, rather than as a direct income-tax deduction. CRA rules can change, so consult the CRA’s current authorized-medical-practitioner list or a qualified tax professional before filing.