# Heath and Dental Premiums



## dany_boy_1971 (Jan 13, 2014)

I work for a major Canadian company that provides us with a group dental and health plan. 
The company pays for a portion of those plans and I pay the rest. 
I have a 3 dependants on my plan 2 kids and my wife. 
Last year it cost I paid more than $3000.00 out of my pocket for this plan. 

Question: Can I use the amount that I paid for for this plan as deductions on my income tax?


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## Homerhomer (Oct 18, 2010)

yes


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## nobleea (Oct 11, 2013)

Yes, as long as it's only the health and dental premium. Any LTD, STD, AD&D premiums wouldn't count.


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## wendi1 (Oct 2, 2013)

Yes, but it won't make any difference until the total medical expenses are greater than 3% of your taxable income.

That's a pretty big hurdle. Does your wife have no income at all? If she has some, these expenses can be moved to her income tax. And it's a twelve month window - not necessarily from Jan 2013 to Dec 2013 - it could run from Mar 2012 to Mar 2013, depending on what's best for y'all.


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## AltaRed (Jun 8, 2009)

nobleea said:


> Yes, as long as it's only the health and dental premium. Any LTD, STD, AD&D premiums wouldn't count.


Sometimes that is not the case for health and dental premiums either. Your company may work on a basis in which the employee share of the health premiums are NOT deductible. Not sure how that works exactly, but in these cases, information should accompany your T4 telling you when you cannot do that. In my case, the accompanying information states a "firm NO".


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## lb71 (Apr 3, 2009)

wendi1 said:


> Yes, but it won't make any difference until the total medical expenses are greater than 3% of your taxable income.
> 
> That's a pretty big hurdle.


It's 100,000, not that big of a hurdle for most people. 



> Does your wife have no income at all? If she has some, these expenses can be moved to her income tax.


This is biggest benefit. If she or your kids have any other medical expenses, they can be added up and used on the lower return.



> And it's a twelve month window - not necessarily from Jan 2013 to Dec 2013 - it could run from Mar 2012 to Mar 2013, depending on what's best for y'all.


Also, if you have any expenses not covered by your plan, they can be added in. For example, any co-pays or deductibles can be added in, assuming you kept the receipts.


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## cedebe (Feb 1, 2012)

nobleea said:


> Yes, as long as it's only the health and dental premium. Any LTD, STD, AD&D premiums wouldn't count.


I have a friend at work who's been claiming her LTD and STD premiums for years. After she told me this a few years ago, I asked the CRA about this and was told no, they can't be claimed. This year I asked again while enquiring about something else and was told yes. Why the confusion, I wonder? I'm assuming you're right in that they can't be claimed, but what's the reason?


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## nobleea (Oct 11, 2013)

cedebe said:


> I have a friend at work who's been claiming her LTD and STD premiums for years. After she told me this a few years ago, I asked the CRA about this and was told no, they can't be claimed. This year I asked again while enquiring about something else and was told yes. Why the confusion, I wonder? I'm assuming you're right in that they can't be claimed, but what's the reason?


It's essentially insurance. Life insurance, disability insurance. If you can claim that, then you should be able to claim term life insurance premiums. Then if you can claim that, then maybe whole life insurance premiums. Which starts to get in to tax evasion with investments.


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## nobleea (Oct 11, 2013)

wendi1 said:


> Yes, but it won't make any difference until the total medical expenses are greater than 3% of your taxable income.


I believe it's 3% of your taxable income, or $2,109. Whichever is LESS.
http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f1/s1-f1-c1-eng.html#N101E0


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## dany_boy_1971 (Jan 13, 2014)

*Private Plan*

Thanks for all the replies but this one is somewhat complicated. I spoke to someone in HR an she told me that our plans are not tax deductable but she was not 100% sure. She advised me to call revenue Canada but the person i spoke with there seamed a little confused as well. She did mentioned that the premiums for Dental and Health plans can be deducted if it's a private plan. I am with Sunlife under a group plan is that considered a private plan? She also mentioned that if the amout that my employer plays is on my T4 as income that it can also have an impact.


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## Charlie (May 20, 2011)

technically it's not deductible. But if it's a private plan (not the provincial med premiums - Sunlife would be a private plan) then it counts as a medical expense to the extent you pay for it. Amounts you pay for disability or life insurance do not count. There are separate rules for claiming the med expense credit that have been noted above (expense thresholds etc)


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## nobleea (Oct 11, 2013)

Do you have other medical expenses you can add on? Even if it's 3K for the premiums, you can't claim the first $2,109. And it's a 15% tax credit, so this would change your tax payable by $134. With some uncertainty as to whether it's deductible or not.


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## OhGreatGuru (May 24, 2009)

According to this http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/hlth/prvt-eng.html information bulletin to employers, if an employer makes contributions to a health or dental plan, it is not supposed to be a taxable benefit to the employee. ( Therefore the employer's contribution should not be on the employee's T4)

From this page, http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/ntllwbl-eng.html health plan premiums paid by an employee and not included in the employee's income are not tax deductible by the employee.

(I don't know why they phrase it this way, since the first page says such premiums should not be included in employee's income in the first place. Maybe there are some unusual conditions, or some legacy collective agreements, where this is still permitted?)

From this page, http://www.cra-arc.gc.ca/E/pub/tp/it339r2/it339r2-e.html _"... contributions or premiums qualify as medical expenses under paragraph 118.2(2)(q) where they are paid directly by the employee, or are paid by the employer out of deductions from the employee's pay." _

I heard that CRA was (finally) going to require employers to show the annual premium deductions on T4 slips to save you adding up all your pay slips. But it didn't happen for 2012 tax year. Maybe it's planned for 2013?


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## domelight (Oct 12, 2012)

dany_boy_1971 said:


> Thanks for all the replies but this one is somewhat complicated. I spoke to someone in HR an she told me that our plans are not tax deductable but she was not 100% sure. She advised me to call revenue Canada but the person i spoke with there seamed a little confused as well. She did mentioned that the premiums for Dental and Health plans can be deducted if it's a private plan. I am with Sunlife under a group plan is that considered a private plan? She also mentioned that if the amout that my employer plays is on my T4 as income that it can also have an impact.


 2013 deductible is 3% of net income or 2,152 (whichever is less)

--any amount you pay for you can deduct re; deducted from your paycheck

If the value of the premium the company pays on your behalf is included on your T4 then you may claim. If its not then you cant. (ask your HR or payroll rep)
--- but not disability or life ins. premiums. no matter who pays it


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