2010 Tax Changes for Cosmetic Procedures No Longer Considered Tax-Exempt

In the federal budget announced on March 4, 2010 expenses incurred for purely cosmetic procedures will no longer be eligible under the Medical Expense Tax Credit. 

As such, these expenses under Health Spending Accounts, Top-Ups or an extra-contractual arrangement.  Examples of cosmetic procedures are liposuction, hair replacement procedures, botox injections, teeth whitening and rhinoplasty.

 
Exceptions   
If a cosmetic procedure is required for medical or reconstructive purposes such as deformities resulting from a congenital abnormality, injury or a disfiguring disease, the expense will qualify under the Medical Expense Tax Credit.  A letter from the doctor indicating that the procedures was required for medical or reconstructive purposes in order to be considererd.  This change is effective March 4, 2010.
Check your plan as the following procedures and prescription products under a Health Spending Account, Top-Up plan, or an extra-contractual arrangement may be covered under some Extended Health or Dental plans:

  • laser eye surgery
  • scierotherapy and other procedures for removal of varicose veins
  • laser therapy for acne performed by a medical doctor or dermatologist
  • cyst removal
  • acne medication ("Accutane")
  • acre cream ("Clindoxyl")
  • orthodontia (e.g. braces)