Medical Premiums on paycheck
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Thread: Medical Premiums on paycheck

  1. #1
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    Medical Premiums on paycheck

    Hello all

    Each month my employer takes a chunk out of gross pay in order to put towards a company health plan with Pacific Blue Cross. The total amount taken off my gross pay does not appear on my T4 at the end of the year. Can I deduct this on my tax return and if so where?

    thanks!


  2. #2
    Senior Member MoneyGal's Avatar
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    Except in Quebec, employer-paid health care premiums for private insurance are a non-taxable benefit.

    So unless you are in Quebec, the amount is not included in your taxable income so there is nothing for you to deduct.

    The value of the premiums forms part of your total compensation but you do not pay income tax on the premiums paid on your behalf.

  3. #3
    Senior Member stardancer's Avatar
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    At the bottom of your T4 slip, if there is a box 85 and a $$ amount in the footnotes, that is the amount you can deduct for private medical plan premiums.

    If you are using a tax program, as soon as you enter box 85 on the T4 page, the program will send the amount over to the medical expense schedule.

  4. #4
    Senior Member MoneyGal's Avatar
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    Stardancer's answer is better than mine.

  5. #5
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    stardancer and moneygal are both right.

    If the employer paid it, it would not be a taxable benefit. But in your case, you're paying it (hence the deduction from your cheque) so it's a qualifying medical expense.

    Not all employers include it in Box 85 (which is info only). Though they should....
    Last edited by Charlie; 2011-05-25 at 12:52 PM.

  6. #6
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    Quote Originally Posted by Mandy101 View Post
    ...
    Each month my employer takes a chunk out of gross pay in order to put towards a company health plan with Pacific Blue Cross. The total amount taken off my gross pay does not appear on my T4 at the end of the year. Can I deduct this on my tax return and if so where?
    ...
    Nowhere in this post do I see that this is employer-paid health premium. OP clearly states it is deducted from his gross pay. So it is a deductible medical expense. Some employers do not put this on their T4s, although they should.

  7. #7
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    My pay slips clearly identify my health care premium as being employer paid benefits......If your having it deducted from your pay it should be tax deductable as a health care cost

  8. #8
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    Quote Originally Posted by Mandy101 View Post
    ...The total amount taken off my gross pay does not appear on my T4 at the end of the year. Can I deduct this on my tax return and if so where?
    You include it as part of Medical Expenses - Line 330.

    Keep a copy of your stub or stubs as proof. I had CRA ask me for a copy one year. I suggested to them they would have more influence than me in getting my federal superannuation plan to include it on the T4 in future.
    Last edited by OhGreatGuru; 2011-05-25 at 10:09 PM.

  9. #9
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    Quote Originally Posted by stardancer View Post
    At the bottom of your T4 slip, if there is a box 85 and a $$ amount in the footnotes, that is the amount you can deduct for private medical plan premiums.

    If you are using a tax program, as soon as you enter box 85 on the T4 page, the program will send the amount over to the medical expense schedule.

    Box 85 is optional. Many employers do not use it.


    I've never seen an employer who didn't have a YTD amount on the last paystub of the year though.

  10. #10
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    Thanks everyone. My employer does deduct this from my gross pay but does not put on my T4 hence I haven't been claiming this as an expense for the past four years. I will put onto line 330 - thanks for your help everyone!


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