Did you know you can save hundreds, maybe thousands in taxes with a Private Health Service Plan?
Are you an employee of your own company and have significant medical and dental expenses each year of $2,000 or more not covered by a health plan? Creating a Private Health Services Plan (PHSP) as soon as possible could save you money.
Individuals are eligible to claim medical and dental expenses for themselves and their families on their personal tax return—the value however of those expenses is somewhat limited. Here’s how it works: The amount of the expenses must exceed $2,337, or 3% of your net income, whichever is lower. As well— the expenses claimed receive a 15% credit against federal tax paid and a 10% credit against provincial tax paid.
The PHSP is 100% deductible against your business income from the very first dollar. If you are in the highest tax bracket then the PHSP will save you well over $1,000 in tax savings every year just on the first $2,337 plus 23% savings in everything over that. The cost of administering the plan can be as low as $10 per claim and as high as $250 depending on the administrator that looks after your plan.
To LEARN MORE about you and your family’s eligibility, visit this website:
Chopek & Associates* strives to be your first choice in accounting services! Operating from Edmonton, AB—We help small to medium sized businesses and individuals, like YOU! Let’s save you money on your next tax return, BOOK with our office today.