Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Whether premiums for medical insurance coverage (XXXXXXXXXX ) deducted from public service superannuation received from the Government of Canada qualify as eligible medical expenses.
Position: Yes
Reasons: Paragraph 8 of IT-339R2 indicates that the payments qualify under paragraph 118.2(2)(q) of the Act.
XXXXXXXXXX 2000-001992
M. Eisner
April 19, 2000
Dear XXXXXXXXXX:
Re: Medical Insurance
This is in reply to your letter of April 14, 2000, concerning the above-noted subject.
You have indicated that your mother, who receives public service superannuation as a result of your deceased father's previous employment with XXXXXXXXXX, was able to become a participant in a plan that provides medical insurance coverage. The medical coverage is administered by XXXXXXXXXX and the monthly premium of $XXXXXXXXXX is being withheld from the superannuation that is paid to her.
You have asked whether the premiums are eligible for deduction on the basis that they are medical expenses.
The income tax treatment in respect of an individual's eligible medical expenses is that the individual may be able to claim a non-refundable tax credit when calculating his or her income taxes. The amount of the medical expense tax credit is determined by multiplying the rate of 17% by the amount of the eligible medical expenses in excess of the lesser of 3% of net income and $1,614. This is explained at Line 330 of the 1999 General Income Tax and Benefit Guide (Copy enclosed).
It is our view that the premiums paid are eligible medical expenses in respect of your mother by virtue of paragraph 118.2(2)(q) of the Income Tax Act as they are being paid under a private health services plan (See enclosed copy of paragraph 8 of Interpretation Bulletin IT-339R2, Meaning of "Private Health services Plans").
We trust that our comments are of assistance.
Yours truly,
John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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