A Private Health Services Plan (PHSP) that meets your needs
The HealthPlus program is so simple and offers such substantial tax savings that some wonder if it is too good to be true.
It sounds too good to be true...is it?
The simple answer is “No”.
The HealthPlus program is
a qualifying Private Health Services plan (PHSP) as
defined in section 248(1) of the income tax act (ITA)
and elaborated upon in IT339R2 “The Meaning of Private Health Services Plan”.
HealthPlus was subject to a complete audit and review
by Canada Revenue Agency (CRA) in 2003/2004. CRA
confirmed that it meets the criteria for a PHSP.
Can't I just claim the medical expense tax credit on my personal income tax return?
Yes, you can claim the medical expense tax credit (METC) on medical expenses that exceed the lower of 3% of your income or $2052 (federal threshold for 2011).
But, the amount above $2052 generates tax savings at the lowest marginal tax rate which is between 19% and 25% depending on your province of residence. As an example, for an Ontarian earning $80,000 with $3,000 in medical expenses, the combined federal and provincial METC saves only $190 in tax.
Take a look at the savings calculator here. You'll see just how much more savings are involved when you use HealthPlus.
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