Did you know filing medical expenses on personal tax returns only provides a small 3% tax credit?
A Private Health Services Plan (PHSP) allows business owners to tax-deduct 100% of their dental and healthcare expenses as a business expense.
EXAMPLE: Net income of $50,000 per year with family medical expenses of $1600. Based on a combined Federal and Provincial Income Tax rate of 25%.
|Personal Tax Return||Paid Personally||Private Health Services Plan||Paid Corporately
|Dental & Healthcare Expense||$1600||Dental & Healthcare Expense||$1600|
|(3% of net income) Deduct||$1500||Admin Fee (10%)||$160|
|Expense available for credit||$100||Tax-deductible total||$1760|
|Non-refundable Tax Credit||$25||Tax Deduction||$1760|
More questions about the Private Health Services Plan? Complete the online form or contact June Borlé at (604) 874-4429 or Toll-free (888) 880-2266.