Great news for 2SLGBTQIA+ community members, and heterosexual couples experiencing infertility, who may be looking to expand their families. Nova Scotia has introduced the Fertility and Surrogacy Tax Credit. This tax credit was discussed on our blog in April of 2022, and has recently been expanded. The aim of the Fertility and Surrogacy Tax Credit is to help make fertility treatments and surrogacy expenses more accessible to families and individuals planning parenthood.
What does the Tax Credit cover?
Beginning with the 2022 tax year, Nova scotia will offer a refundable tax credit equal to 40% of the cost of fertility care provided by Nova Scotia-licensed medical practitioners, and surrogacy-related medical expenses. There is no limit to the number of treatments an applicant family can claim, but the maximum is a total of $20,000 in eligible expenses, for a maximum annual credit of $8,000.[1]
Who is Eligible?
To qualify for the credit, you must file your 2022 income tax return, this includes Form NS428. You must also have eligible fertility and/or surrogacy expenses that were paid in the 2022 tax year. Expenses are eligible if the service was provided in, or the expense occurred in Canada. Services could include:
- fees paid to fertility clinic or donor banks in Canada.
- reimbursement of expenses, paid to or on behalf of a surrogate or donor.
- medical expenses related to a surrogate or donor to allow you to become a parent.
All expenses must be in accordance with the Reimbursement Related to Assisted Human Reproduction Regulations.[2]
Many people seek various fertility treatment from providers outside Canada; for example, sperm donation from the United States. This expense will not be eligible.
How to Apply
Eligible applicants can apply online at NovaScotia.ca, but before filing, here is a list of important items and supporting documents you will likely need:
- Your Social Insurance Number
- A copy of your 2022 income tax return (including T1 form and Form NS428)
- Your 2022 Canada Revenue Agency Notice of Assessment
- Information about your fertility and surrogacy service providers (including provider name, net amount of expense, copy of your receipts).
- A copy of your referral letter from a Nova Scotia-licensed medical practitioner if your fertility and surrogacy provider is outside of Nova Scotia.
- Consent statement form and social insurance number of your spouse or common-law partner, if you had a spouse or common-law partner in 2022.
- Consent statement form and social insurance number, and contract from your surrogate or donor, if you used a surrogate or donor.
If you have any further questions regarding the Fertility and Surrogate Tax Credit, or the Reimbursement Related to Assisted Human Reproduction Regulations, please contact the family law team here at BOYNECLARKE.
[1] Fertility and Surrogacy Tax Credit Program Opens, April 2023. (https://novascotia.ca/news/release/?id=20230405001#:~:text=Beginning%20with%20the%202022%20tax,for%20surrogacy%2Drelated%20medical%20expenses)
[2] Fertility and Surrogacy Tax Credit, 2023. (https://novascotia.ca/finance/en/home/taxation/tax101/personalincometax/fertility-and-surrogacy-tax-credit.html)