Is Tutoring Tax Deductible in Canada? What Parents Need to Know

by Julie Diamond, OCT

As parents, we all want to provide our children with the best possible education. Whether it's to help with learning gaps, improve grades, or give your child an academic edge, tutoring has become an essential tool for many families. However, many parents may not be aware that some tutoring services in Canada can be tax deductible, providing a welcome financial relief. In this blog, we’ll explore the ins and outs of how tutoring can qualify for tax deductions, and offer tips on how to maximize your tax savings.

Is Tutoring Tax Deductible in Canada?

The short answer is yes, in some cases, tutoring expenses can be tax deductible, but there are important conditions and specific circumstances where this applies.

The Canada Revenue Agency (CRA) allows parents to claim tutoring expenses under the Medical Expense Tax Credit (METC) if tutoring is prescribed by a medical practitioner. This applies when the tutoring is provided to a child who has a learning disability or mental impairment, and the tutoring is designed to help address these challenges.

Let’s dive deeper into how this works:

1. The Medical Expense Tax Credit (METC)

The METC is a non-refundable tax credit that allows Canadians to claim a percentage of eligible medical expenses. Tutoring falls under this category if:

- It’s prescribed by a medical professional (such as a doctor or psychologist) as a necessary part of your child’s care for a mental or physical condition.

- The tutoring is performed by a qualified person, often including certified teachers who tutor or professionals with expertise in addressing learning disabilities or impairments.

For example, if your child has been diagnosed with ADHD, a learning disability, or autism, a doctor could prescribe tutoring as part of their treatment plan. The expenses related to tutoring sessions may then qualify as a medical expense.

2. Qualified Tutoring Expenses

Not all tutoring services are automatically tax deductible. The CRA outlines specific criteria for eligible tutoring expenses.

To qualify for the Medical Expense Tax Credit, the following must be true:

- The tutoring must be directly related to the child’s condition (as outlined by a medical diagnosis).

- The tutor must be a qualified educator or specialist in the area of the child’s diagnosed need.

- You need to obtain a prescription from a medical professional before claiming tutoring expenses. The prescription should specify the need for specialized tutoring to address the condition.

Make sure to keep all necessary documentation - the medical prescription, receipts from the tutoring service, and any notes outlining the child’s diagnosis and treatment.

3. What Expenses Can Be Claimed?

When claiming tutoring under the METC, you can deduct the following:

- Fees paid to a qualified tutor: This includes the actual cost of the tutoring sessions. The tutor must be a certified teacher or someone who has the necessary credentials to address learning disabilities or mental impairments.

- Associated program fees: If your child is enrolled in a specialized program that addresses their learning challenges, and a portion of the program includes tutoring, you may be able to claim these fees.

- Transportation costs: If you need to transport your child to and from tutoring sessions that are part of their medical treatment, these costs may also be deductible.

4. How to Maximize Tax Benefits for Tutoring

To ensure you’re making the most of the tax deductions available for tutoring, here are a few tips for parents:

a. Keep Accurate Records

- Maintain detailed records of all tutoring expenses, including the medical professional’s prescription, receipts from the tutoring service, and invoices that outline the cost of tutoring sessions.

- Ensure that all receipts include the tutor’s qualifications, their relationship to the child’s needs, and a description of the services provided.

b. Work with Certified Educators

- As only certain tutors qualify for this tax deduction, make sure you are working with a certified teacher or an individual who has specialized training in addressing your child’s condition.

- Many tutoring services, like Diamond Teachers Group, offer certified educators who specialize in working with students who have learning disabilities, which can make it easier to qualify for this deduction.

c. Consider Specialized Programs

- If your child requires a more comprehensive approach to tutoring, consider enrolling them in specialized programs that offer tutoring as part of their services. Programs that focus on students with ADHD, dyslexia, or other learning challenges can provide targeted support, and many of these services may qualify for tax deductions.

d. Bundle Medical Expenses

- Tutoring is just one part of the larger Medical Expense Tax Credit. If your child has additional medical needs, consider bundling those expenses with tutoring to maximize your deductions. Expenses such as therapy, assistive devices, and psychological assessments can also be claimed under the METC, provided they meet the CRA’s criteria.

e. Consult a Tax Professional

- Every family’s tax situation is different, and it’s essential to understand how tutoring fits into your overall tax strategy. Consult with a tax professional who is familiar with medical expenses and the tax treatment of educational support services. They can help you navigate the requirements and ensure that you’re claiming everything you’re entitled to.

5. Beyond the METC: Additional Provincial Programs

Some provinces may offer additional credits or deductions for families with children who have special needs. For example, the Ontario Ministry of Education and other provincial bodies may offer financial assistance or reimbursements for tutoring, therapy, or special education programs. It's worth researching any provincial programs that can help alleviate costs.

6. Non-Deductible Tutoring Services

It's important to note that not all tutoring expenses are tax deductible. If your child does not have a diagnosed learning disability or mental impairment, tutoring costs will not qualify for the Medical Expense Tax Credit. For example, tutoring to help improve grades in math or science or tutoring for enrichment purposes typically cannot be claimed on your taxes.

However, even if you can’t claim tutoring expenses, there are still other financial supports available. Some provincial education grants, community programs, and even employer benefits may offer help with covering tutoring costs.

7. Conclusion: Tutoring as an Investment in Your Child's Future

Investing in your child’s education can sometimes feel like a significant financial burden, but knowing that some tutoring expenses are tax deductible can offer families much-needed relief. By working with certified tutors and maintaining proper documentation, you can make the most of the tax deductions available through the Medical Expense Tax Credit. Beyond tax savings, tutoring helps to build your child’s confidence, fills learning gaps, and can have a long-lasting impact on their academic journey.

At Diamond Teachers Group, we’re here to support families across Canada with certified, specialized tutoring services. Whether your child needs help managing learning disabilities or simply needs a boost in their academic performance, we’re committed to providing personalized support that fits their unique needs.

For more information on how our services can qualify for tax deductions, or to schedule an online tutoring session, contact us.