Personal Health Expenses
In many cases health plan related expenses can be declared as tax deductible expenses when filing
taxes. This is true for both individual plans and employee benefit plans.
According to the Canadian Revenue Agency (CRA), the premiums for a private health insurance plan that
cover yourself, your spouse and/or children are eligible tax deductions. This also includes premiums that
cover a common law partner. The taxes paid on these premiums are also eligible tax deductions.
Know that out-of-pocket medical expenses (e.g. eligible expenses for things not covered by your health
plan due to pan maximums) are also eligible.
Other possible tax deductions are things such as vehicle modifications and mobility aids required for
medical reasons.
For a complete listing of tax deductible medically-related expenses see the CRA web site here.
Employer Health Expenses
If you are a small business employer, you should consider group benefits as a high value method of
remuneration for employees.
More and more Canadians are concerned with personal health and wellness.
All premiums and any applicable taxes are fully tax deductible to the business (there is no taxable
benefit transferred to employees for health benefits claimed on a group plan).
From the employer point of view, group benefits can be an effective tool for recruiting and retaining
quality employees.
From an employee point of view, employee benefits offers protection from large unexpected expenses if
you gets ill or seriously injured.
Conclusion
If you have any questions about the tax benefits of health insurance plans please contact us. We are
experienced, fully licensed Canadian insurance brokers. We are here to help!
