Cdn working for a US Employer - Cdn medical expenses via tax credit..

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Grad467_2
Posts: 27
Joined: Wed Apr 15, 2020 6:57 pm

Cdn working for a US Employer - Cdn medical expenses via tax credit..

Post by Grad467_2 »

First off, I love this place (found it last year and learned a ton) and nelsona, you are definitely the bomb with the knowledge you share with us (started doing taxes for me and my family over the last 2 years and this place definitely helped me out, thank you).

So my questions are below (and thank you in advance for anyone who chimes in). Regarding my subject info, I pay into a US HSA and also pay into medical, vision and dental coverage (over and above what my employer pays).

1) I have read conflicting info on the internet regarding HSA - I have read that my contributions can be applied towards CRA's medical expenses but I also read that the monies I use from the HSA to cover out of pockets expenses I don't have to claim (meaning, I can claim the gross vs net)? I assume this is false but would love feedback.
2) Regarding my personal contribution for Vision and Dental (for some reason Medical doesn't show up via my EOY pay stub summary), I assume I can use the YTD gross amount as a medical expense and not worry about what the employer covered (something I would not claim regardless)?
3) I pay supplemental insurance (optional & accidental) for me and my family (over and above the basic employer coverage that the employer pays) - I read I cannot claim these expenses (I have never had to use this coverage to date - knock on wood)?

Thank you in advance for any helpful info and nelsona, thanks again (and others) for this site..
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cdn working for a US Employer - Cdn medical expenses via tax credit..

Post by nelsona »

1, Your contributions to your HDSA are not deductible, so those made through your employer should be added back to your wages on your Cdn return, and any direct contributions you might have made aren't reported on your Cdn return. That said, it means that any medical expenses you pay are eligible for Cdn medical expenses are eligible, even if you are "refunded" by your HSA. It is simply treated like your credit card. They do need to be itemized for Cdn purposes, and backed up with a receipt that shows what the expense was and the payment made.

2. The premiums you pay for Med/Dental/Vision are an eligible medical expense in canada. You do have to add the premiums back into your wages however.

3. These are considered non-medical insurance premiums, not deductible, but likle not taxable if used either.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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