# How to claim Quebec's "private health insurance" when living in Ontario?



## firsttimer (Feb 9, 2012)

Re,

I'm a federal government employee who lives in Ottawa but works in Gatineau. 

On REL-1 that I receive each year there's an amount in box J ("Private health insurance plan). I recall that during previous years my accountant used to include that amount on Line 232 ("Other deductions") on the T1 form. Since I've decided to start filing taxes on my own, I wonder how I describe this deduction in the field preceding Line 232 *and* shouldn't this amount be claimed as a medical expense (if I include this amount on Line 330, it does not affect my refund, whereas on Line 232 it does )

Thanks!

P.S. If you're also a government employee who works in Quebec but lives in Ontario, how do you claim this expense?


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## ghostryder (Apr 5, 2009)

I see no reason this should be on line 232 in the first place. Just 'cause your accountant did it, doesn't mean he should have.


Isn't box J the amount paid by your employer to your employer's health plan? This doesn't even qualify as a medical expense for line 330 federally because you didn't pay this. It's the amount of your taxable benefit. It's not an expense.


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## OhGreatGuru (May 24, 2009)

The employer's contribution to a group health plan is a taxable benefit in Quebec, but not in any other province, which is why it is shown in Box J of REL-1. 

The amount in Box A of the REL-1 (Employment Income) includes this taxable benefit. If you are not a resident of Quebec, Box J needs to be deducted from Box A to get what your employment income would be in Box 14 of a T4 for every other province but Quebec. (I was a public servant residing in Ontario but with my office in Quebec for many years, and I would receive both a REL-1 and a T4. The difference in employment income between the 2 forms was accounted for by the amount in Box J) 

As a federal government employee you should have both a T4 and a REL-1. You simply use the amount in Box 14 of the T4 as your employment income, and ignore the amount in Box A of REL-1. The only reason I can think that your accountant would have had to deduct Box J is if he was incorrectly using the amount in Box A in the first place.

PS: When you come to complete Line 437 (income tax deducted) you have to add the amount in Box 22 of the T4 and the amount in Box E of the REL-1. Box 22 only includes the federal tax withheld.


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## ghostryder (Apr 5, 2009)

Interesting.

So then is this a eligible medical expense in QC on the provincial return? It wouldn't be federally since the employee was never out of pocket.


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## OhGreatGuru (May 24, 2009)

No, it is not an eligible medical expense. It is a *taxable benefit* that is added to your earned income. So you pay Quebec income tax on it.


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## firsttimer (Feb 9, 2012)

Thanks a lot for your responses!


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