A Practical Guide for Alberta Clients
Investing in your mental health is meaningful, and it’s also a financial commitment.
If you’re seeing a licensed Registered Psychologist or Registered Provisional Psychologist in Calgary, some of those session fees may qualify as eligible medical expenses on your Canadian tax return.
Each year, several of our clients ask about this during tax season, so we’ve put together a clear overview of how it works and how we can help make the process easier.
Are Psychology Services Recognized by the CRA?
Canada Revenue Agency (CRA) determines which health professionals are recognized for the purposes of the Medical Expense Tax Credit (METC).
In Alberta, the CRA recognizes:
- Psychologists as authorized medical practitioners
- Counsellors are not listed
- Psychotherapists are not listed
This means services provided by a Psychologist licensed in Alberta may qualify as eligible medical expenses under current CRA guidelines.
Eligible expenses are typically claimed on:
- Line 33099 – for yourself, your spouse/common-law partner, or children under 18
- Line 33199 – for other eligible dependents
What Can You Claim?
If you’re working with a licensed psychologist providing evidence-based assessment or therapy, you may be able to claim:
- Session fees you paid out of pocket
- Services within any continuous 12-month period ending in the tax year
- Expenses for yourself, your spouse, or eligible dependents
You cannot claim:
- Amounts reimbursed by insurance or a health spending account
- Services from practitioners not recognized by the CRA in Alberta
- Coaching or non-clinical personal development services
The Medical Expense Tax Credit is non-refundable. That means it can reduce the amount of tax you owe, but it doesn’t generate a refund on its own.
You can claim the portion of eligible medical expenses that exceeds the lesser of:
- 3% of your net income, or
- The CRA’s annual threshold amount (which changes each year)
Because of this threshold, some families benefit from combining eligible medical expenses on one return.
Documentation Matters (And So Does Record Retention)
We contacted the Canada Revenue Agency directly to confirm eligibility of services provided by our psychologist team members. They emphasized two important points:
- Receipts must clearly show:
- Practitioner’s full name
- Professional designation (e.g., Registered Psychologist)
- Registration / License number
- Date of service
- Amount paid
- Records should be kept for 7 years, as this is how far back a tax audit may review.
We’re sharing this for general informational purposes only. Tax rules can change, and individual situations vary. If you’re unsure how this applies to you, it’s always wise to confirm with your accountant or contact the CRA directly.
Need a Statement of Account? We’re Happy to Help.
To make tax season easier, we can prepare an annual Statement of Account upon request.
This includes:
- Therapist name, designation, and registration / license number
- Session service, dates, and fees
- Total amount paid for the year
If you’d like one for your records, simply email our team and we’ll prepare it for you. We’re happy to make that part straightforward.
Frequently Asked Questions
Can I claim virtual therapy sessions?
Yes. If the service was provided by a licensed Psychologist in Alberta, virtual sessions are treated the same as in-person sessions.
What if my insurance covered part of the session?
You can only claim the portion you personally paid. Reimbursed amounts cannot be claimed.
Can I combine expenses with my spouse or child?
Yes. Eligible medical expenses for yourself, your spouse or common-law partner, and dependent children under 18 may be combined on one return to help exceed the claim threshold.
Are all therapy services tax deductible in Alberta?
No. Only services provided by practitioners recognized by the CRA qualify. In Alberta, psychologists are recognized medical practitioners. Counsellors and psychotherapists are not currently listed for Medical Expense Tax Credit (METC) purposes.
How long should I keep my receipts?
The CRA recommends keeping documentation for 7 years in case of audit.
A Final Note
We’re proud to provide licensed, regulated, evidence-based psychological therapy in Calgary.
Therapy is an investment in your wellbeing. If part of that investment can reduce your tax burden, we want you to be informed and supported.
If you need documentation, have questions about your therapist’s designation, or would like an annual statement prepared, please reach out to us.
For personalized tax advice, consult your accountant or contact the Canada Revenue Agency directly.
