You will be pleased to know that any medical payments you make for the child or grandchild who does not reside in Canada may still qualify for the medical expenses tax credit.
In a Technical Interpretation, CRA confirmed that, to claim a medical expense in respect of an amount paid for a dependent, the individual must be a person who is:
- an adult child, adult grandchild, parent, grandparent, brother, sister, uncle, aunt, niece, or nephew of the individual or of the individual’s spouse or common-law partner;
- dependent on the individual for support at some time in the year; and
- a resident of Canada at some time of the year. This residence requirement does not apply, if the person is the child or grandchild of the individual or of the individual’s spouse or common-law partner.
Please note that the residency requirement also does not apply to medical expense claims in respect of the taxpayer, their spouse or common-law partner, and minor children.
