Discussions

Just reading through the gov't of Canada's page and I think I understand but I want to clarify with those in the know...  
 
I have Blue Cross. They pay for pres:criptions up to a certain amount (let's say, it's $1000). Now lets say my actual spending for the year on pres:criptions is $2000, so I had to pay $1000 out of my own pocket.  
 
Now lets say my income is 50,000 (net, I assume is what they care about?).  
According to the Gov't site, you get anything back over 3% of your income.  
 
3% of my income would be $1500  
 
So - in this case, I'm not eligible to claim the $1000 right? Because it's less than 3% of my income?  
 
I assume this means that if I had spent say $5000 for the year, and got $1000 covered by blue cross I could claim the $4000 back on my taxes, but I would have to subtract the 3% of my earnings, meaning that I can only claim $2500.  
 
Is that right? That's how I'm reading it, but I often find it confusing! Thanks!

MacBook said "Just reading through the gov't of Canada's page and I think I understand but I want to clarify with those in the know...     I have Blue Cross. They pay for pres:criptions up to a certain amount (let's say, it's $1000). Now lets say my actual spending for the year on pres:criptions is $2000, so I had to pay $1000 out of my own pocket.     Now lets say my income is 50,000 (net, I assume is what they care about?).   According to the Gov't site, you get anything back over 3% of your income.     3% of my income would be $1500     So - in this case, I'm not eligible to claim the $1000 right? Because it's less than 3% of my income?     I assume this means that if I had spent say $5000 for the year, and got $1000 covered by blue cross I could claim the $4000 back on my taxes, but I would have to subtract the 3% of my earnings, meaning that I can only claim $2500.     Is that right? That's how I'm reading it, but I often find it confusing! Thanks! "

i believe you have it correct as well but i haven't done my own taxes in a few years.  
 
one thing we were able to do was claim the cost of blue cross if you pay the premium so look into that and if that is still allowed make sure you put the cost into your calculations  
 
also dont forget mileage and meals f you had to travel for appointments

Now lets say my income is 50,000 (net, I assume is what they care about?).  
According to the Gov't site, you get anything back over 3% of your income.  
 
-I think you only get back 15% of your claimed expenses. Not everything-  
 
3% of my income would be $1500  
 
So - in this case, I'm not eligible to claim the $1000 right? Because it's less than 3% of my income?  
 
-You are correct-  
 
I assume this means that if I had spent say $5000 for the year, and got $1000 covered by blue cross I could claim the $4000 back on my taxes, but I would have to subtract the 3% of my earnings, meaning that I can only claim $2500.  
 
-Correct. You could claim $2500 which should give you about $375 on your return if I figured that right. But...One thing you also need to consider at $50,000 income your Manitoba Pharmacare Deductible should be around $2800. Meaning you should have prescriptions covered by Pharmacare instead.

with the money spent on the Blue Cross factor in that this is with after tax dollars. The money spent to cover the rest of the bill is also in after tax dollars. so a $5000 expense is actually costing you $7460 and then getting a small deduction.. IF one is incorporated use a health spending account and make it all a 100% business expense.

can you claim dental expenses...cleaning?

you can claim anything that is medical including mileage to see a doctor. AS long as it is not cosmetic, it should be a deduction

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-330-331-eligible-medical-expenses-you-claim-on-your-tax-return.html

eph2-8 said "with the money spent on the Blue Cross factor in that this is with after tax dollars. The money spent to cover the rest of the bill is also in after tax dollars. so a $5000 expense is actually costing you $7460 and then getting a small deduction.. IF one is incorporated use a health spending account and make it all a 100% business expense. "

altho thats true i have found that the corporate plans are so expensive that buying a comparable personal plan with after tax dollars is cheaper

Benefit of the health spending account is that it is corp paid and tax free to the individual... corporate expense tax free benefit to employee. A HSA does not have a premium or an annual cost, so it is 100 percent cost effective. You can also pay for a personal plan with some companies as a business expense so again a 100 percent tax deduction to the business.

eph2-8 said "Benefit of the health spending account is that it is corp paid and tax free to the individual... corporate expense tax free benefit to employee. A HSA does not have a premium or an annual cost, so it is 100 percent cost effective. You can also pay for a personal plan with some companies as a business expense so again a 100 percent tax deduction to the business. "

i wasnt specifically referring to heath spending accounts but similar to the reference on blue cross premiums  
 
I dont have blue cross but my families plan cost 500 per/yr, its not a awesome plan by any means but similar plans quoted to my corporation were 10X that(cheapest was 400 per/mth, most expensive was 750 for only my family)So even tho it would be paid and tax deductible from the corporation its still 4800 less i can pull out so yes I believe my 500 after tax expense is cheaper in the end  
 
HSA- I have looked into allocating an amount into a HSA but from what i understand about them CRA much prefers you to have a management company administer the account (looks bad if the same person that uses it is approving the expense, easy to flag) but the cheapest administration I found was 300 a year and only available for directors not employees, not a lot and right now im not concerned about employees, but since i have a 500 plan already i dont find it necessary  
 
o to summarize it doesnt matter if its 100% tax deductible for the company if the company money is my monsy  
 
ps if you guys have found better deals please refer me lol

Fishin Guy said "Now lets say my income is 50,000 (net, I assume is what they care about?).   According to the Gov't site, you get anything back over 3% of your income.     -I think you only get back 15% of your claimed expenses. Not everything-     3% of my income would be $1500     So - in this case, I'm not eligible to claim the $1000 right? Because it's less than 3% of my income?     -You are correct-     I assume this means that if I had spent say $5000 for the year, and got $1000 covered by blue cross I could claim the $4000 back on my taxes, but I would have to subtract the 3% of my earnings, meaning that I can only claim $2500.     -Correct. You could claim $2500 which should give you about $375 on your return if I figured that right. But...One thing you also need to consider at $50,000 income your Manitoba Pharmacare Deductible should be around $2800. Meaning you should have prescriptions covered by Pharmacare instead. "

Great, thanks!  
 
Does everyone have to use Pharmacare in MB? What about families that have blue cross costs maxed out but make more money than what it is worth for the Pharmacare deductible to cover the rest of the pres:criptions? Can they still claim it on their taxes without using pharmacare?