Private Health Services Plan Deduction: Who Qualifies and What You Get
Self-employed individuals in Canada may be able to deduct private health insurance premiums as a business expense.
This scheme allows self-employed individuals to claim the cost of their private health and dental insurance premiums as a business expense.
Who it's for
This is specifically for people who are self-employed and pay for their own private health or dental insurance plans.
What you get
You can deduct the premiums you pay for private health and dental plans from your business income. This helps reduce your overall taxable business income.
What it costs you
To use this, you must be actively paying for a private insurance plan. You also need to ensure you meet the specific criteria regarding your business income to qualify for the deduction.
The catch to know
You cannot "double dip." If you choose to claim these premiums as a business expense, you cannot also claim them as personal medical expenses on your tax return.
How to apply
- Keep all receipts and records of your private health and dental premium payments.
- Ensure your insurance plan meets the required criteria for business expenses.
- Report the premiums as a business expense when filing your taxes.
- Consult the official government portal for specific filing instructions.