tutoring tax-deductible

Is Your Tutoring Tax Deductible?

When deciding if tutoring is right for you, the question of cost will inevitably arise. We have previously outlined how much a tutor costs, and saving money on that amount would be great. Through Tutoring…With a Twist*, it’s possible to earn free tutoring with our referral program. On top of that, your tutoring might even be tax deductible!

Disclaimer: This article is not intended to serve as legal or tax advice. The contents of this article are for general information only and should not be interpreted as instructional.

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Tutoring is Tax Deductible… Sort of

Once upon a time, tutoring was fully tax deductible in Canada. But as the government changed over the years, so too did governmental policies. As a result, tutoring is now tax deductible for certain people who meet certain requirements.

How Do You Qualify for Tax-Deductible Tutoring?

When filing your tax return in Canada, tutoring falls under medical expenses. Since tutoring is not necessarily a medical expense for everyone, not everyone qualifies for tax-deductible tutoring.

The Canada Revenue Agency (CRA) has recently updated Form T2201 to include a wider range of mental functions that grant eligibility for the Disability Tax Credit (DTC). If your child does not qualify for the DTC, they might qualify for tax-deductible tutoring.

According to the CRA, tutoring fees are tax deductible when provided to “a person with a learning disability or an impairment in mental functions, and paid to a person in the business of providing these services to individuals who are not related to the person.” Additionally, a medical practitioner must certify in writing that these services are necessary.

If you’re not sure whether your child is eligible for the DTC or tax-deductible tutoring, we encourage you to speak with an accountant.

Which Learning Disabilities Render Your Tutoring Tax Deductible?

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Learning disabilities and mental impairments each come with their own challenges, and one might argue that all learning disabilities should fall into the tax deductible category. Unfortunately, some disabilities might not qualify.

Dyslexia is a common learning disability that leads students to seek the help of a tutor. While dyslexia makes learning difficult, it usually isn’t enough to qualify for tax-deductible tutoring. However, if you can receive written consent from a medical professional, tutoring will be tax deductible.

The same goes for other learning disabilities such as dyscalculia, attention-deficit hyperactivity disorder (ADHD), and conditions on the autism spectrum. If a medical professional agrees that the disability meets the government’s criteria, tutoring will be tax deductible.

Other Forms of Funding

If your tutoring isn’t tax deductible at the federal level, don’t fret! There might be provincial funding options depending on where you live and which disability your child has.

In British Columbia, children on the autism spectrum are eligible for funding that can be put toward tutoring. Up to $6,000 is available every year for educational purposes and other services. Other provinces might have similar programs, so do some research or speak to an accountant to see what is available in your area.

We’re Here for You

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At Tutoring…With a Twist*, we’re invested in our twisted families. We care deeply about the success of our students, and we’re prepared to help you on your journey through life, no matter what that journey looks like. If you have any questions regarding funding or absolutely anything else, feel free to contact us. We’d love to hear from you!

Students find the most success when they’re able to work with a tutor and then apply their skills independently thereafter, so we’ve put together a list of education resources to keep your kids busy in the off hours.

If you want more free educational content, check out our Facebook page and YouTube channel.

*Services provided by With a Twist Education Ltd.

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