Putting medical expenses into perspective

I have had some business owners in the past tell me that they didn’t need a HSA plan as their accountant had been writing-off all their medical receipts. Upon further inquiry it was found that medical receipts were gathered for their personal tax return and not their corporate return.

Family medical expenses claimed on you and your spouse’s personal tax returns are subject to restrictions. The first $2,171 for 2014 or 3% of net income of expenses CANNOT be claimed for the federal tax credit. Even when the CRA reimburses the claim it is always after-tax personal dollars.

Let’s look at an example of what it would cost your corporation:

Total Business Savings with MyHSA Plan = $913.97

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