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Marketing Monthly | April 2017: Tax & Estate Planning

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In this issue:

  1. Did you have medical expenses? You may be able to claim them on your income tax and benefit return
  2. Employee benefits: Taxable or not?

Did you have medical expenses? You may be able to claim them on your income tax and benefit return

You can reduce the amount of federal tax you pay by claiming a non-refundable tax credit on a wide variety of medical expenses, including hospital services, nursing home fees, and medical supplies.

You may be able to claim medical expenses for yourself, your spouse or common-law partner, your dependent children (under 18 years of age), and other dependants.

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Employee benefits: Taxable or not?

When you get your T4 slip in January or February, you may wonder why the employment income reported in Box 14 is higher than the salary or wages you earned for the year. That’s because your employer must report premiums it pays for certain group benefits and the value of some perks as a taxable benefit, and you must pay taxes on those amounts.

In addition, both you and your employer have to make Canada or Quebec Pension Plan contributions on the value of all taxable benefits plus Employment Insurance contributions on taxable benefits you receive in cash.

However, there are valuable company perks, such as a cell phone, tuition reimbursement and service awards, that aren’t taxable in certain circumstances. Here is how the Canada Revenue Agency (CRA) treats eight common employee benefits for tax purposes…

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