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The biggest
difference between a McGill Private Health Savings Plan (PHSP)
and your regular health insurance is that a McGill PHSP provides...
- 100% tax-deductible health and
dental expenses.
- 100% coverage with more eligible
expenditures.
- No Monthly Premiums.
How is this possible? The
Federal Government changed the Income Tax Act as a benefit
to self-employed and small business owners. Ironically it
was changed years ago and as of yet, so few Canadian small
business owners are taking advantage of it.
Even if you already have an insurance plan, add a McGill PHSP
and deduct the remaining amount / percentage your existing
plan doesn't. FIRST
You pay your health or dental expenses
as you normally would. But instead of your insurance company
covering 80% of the cost or limiting the amount you can claim
- Your McGill PHSP will cover 100% of the cost and reimburse
you this amount (see
eligible expenditures as defined by CRA).
SECOND
Your business then sends McGill
Financial Services (the plan administrator as required by
the CCRA) the receipt and a cheque to cover the expense, along
with a 10% administrative fee both of which are 100% tax deductible.
(see your saving estimates online claims calculator or the
example) THIRD
McGill Financial Services then
provides the employee / family member with a tax-free reimbursement
of the expense incurred. You
can tailor your McGill PHSP in a way that suits your company
and your family needs and
you will never have to pay for coverage you don't use or need
- remember... NO
MORE MONTHLY PREMIUMS! |
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For a comprehensive listing of eligible
expenses please click here: Section
118.2 of the Income Tax Act
MEDICAL PROFESSIONALS
A medical practitioner encompasses a broad range of individuals
in the medical profession who are authorized to practice in
accordance with the practitioners governing body, including
but not limited to the following:
| Acupuncturist |
Nutritionist |
Naturopath |
| All
Optical Services |
Optician
|
Optometrist
|
| Psychologist |
Psychiatrist |
Psychoanalyst |
| Neurologist
|
Orthopedist |
Chiropodist |
| Podiatrist
|
Obstetrician
|
Pediatrician |
| Practical
Nurse
(For medical service) |
Registered
Nurse |
Christian
Science
Practitioner |
| Orthodontist |
Dentist
|
Dental
Mechanic |
| Ophthalmologist |
Therapist |
Speech
Therapist |
| Osteopath |
Oculist |
Gynecologist |
| Surgeon |
Dermatologist
|
Physician |
| Chiropractor |
Physiotherapist |
Plastic
Surgeon |
HOSPITAL SERVICES
| Anesthetist
|
Oxygen
Masks, Tent |
Vaccines |
| Hospital
Bills |
Use of
operating Room |
X-Ray
Technician |
MEDICATION
| All
Prescription Drugs Insulin or Substitutes Liver Extract-
injectable for pernicious anemia |
Any non-prescription
medicines (over the counter) prescribed by a qualified
medical practitioner and recorded by a licensed pharmacist |
Tapes
or Tablets- for sugar content tests by diabetics,
if prescribed |
|
Chinese Medicine |
Viagra |
| Oxygen |
Vitamin
B12 – for pernicious anemia |
PRESCRIBED MEDICAL TREATMENT
| Blood
Transfusion |
Healing
Services |
Psychotherapy |
| X-Ray
Treatments |
Radium
Therapy |
Hydrotherapy |
| Bone
Marrow or
Organ Transplant |
Insulin
Treatments Injections |
Speech
Pathology or
Audiologoy |
| Diathermy
Nursing (by Registered Nurse) |
Ultra-violet
Ray
Treatments |
Electric
Shock
Treatments |
| Pre-Natal,
Post
Natal Treatments |
Whirlpool
Baths |
Laser
Eye Surgery |
OTHER MATERIALS AND APPARATUS THAT
DON'T REQUIRE A PRESCRIPTION
| Any
apparatus or material, paid to a doctor, nurse or
hospital |
Artificial
kidney machine, including installation, operating
costs |
Blood
sugar level measuring devices for diabetes Laryngeal
speaking aid |
| Crutches |
Artificial
Eye |
Hernia
Truss |
| Colostomy
pads |
Illestomy
pads |
Artificial
Limb |
| Iron
Lung |
Spinal
Brace |
Brace
for a limb |
| Any
device to aid the hearing of a deaf person including
bone conduction telephone receivers, extra loud audible
signals and devices to permit volume adjustment of
telephone equipment above normal levels |
Catheters,
catheter trays, tubing diapers, disposable briefs
required by incontinent persons |
Wheel
Chair |
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ALL DENTAL SERVICES
| Dental
X-rays |
Extracting
Teeth |
Oral
Surgery
(e.g. Root canal) |
| Denture
Repairs & Replacement |
Filling
Teeth |
Straightening
Teeth
(e.g. brace) |
| Examinations |
Gum Treatment |
Cosmetic
Procedures |
LABORATORY EXAMINATION AND TESTS
| Blood
Tests |
Metabolism
Tests |
Stool
Examination |
| X-Ray
Examination |
Cardiographs
|
Spinal
Fluid Tests |
| |
Urine
Analyses |
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OTHER EXPENDITURES
| Ambulance
Charges |
Colostomy
pads |
Prescription
Birth Control Pills |
| Home
Maker Service and Home Care (attendant must be a non-relative) |
Transportation cost-to
hospital, clinic or doctor’s office to obtain services
not otherwise available |
Rehabilitative
therapy, lip reading and sign language training |
| Specially
trained animals to assist the blind, deaf, for severely
impaired persons, including the cost of its care and
maintenance |
Transportation, meals
and accommodations (reasonable expenses for meals,
accommodation and travel costs for patient and an
accompanying attendant may be deductible if;
1. equivalent medical services are not available locally;
2. The route traveled is reasonably direct;
3. Medical treatment is reasonable and distance traveled
is at least 80 kilometers) |
Reasonable
costs for adapting a residence to accommodate a disabled
person (e.g. wheelchair ramp, lifts, bath facilities) |
EXPENSES THAT DO NOT QUALIFY
| Acupuncture
treatments if they are not performed by a licensed
physician |
Health
programs offered by resort hotels, health
clubs |
Air
conditioners, humidifiers, dehumidifiers or air cleaners |
| Illegal
operations, treatment or drugs |
Antiseptic
diaper service Scales for weighing food |
(Non
prescription) birth control devices |
| Payments
to a municipality where the municipality employed
a doctor to provide medical services to the residents
of the municipality |
Special
food or beverages are not a deductible expense for
tax purposes. However, if said food or beverages
are taken to alleviate or treat an illness and not
nutritional, they may be allowed. Such claims must
be accompanied by a letter from a medical doctor |
Maternity
clothes Wigs-unless made to order for individuals
who have suffered abnormal hair loss owing to disease,
medical treatment, or accident |
| Tooth
paste |
Medical
expenses for which you are reimbursed or are entitled
to be reimbursed from other plans |
IMPORTANT - Provincial Health
Care Premiums ARE NOT eligible expenditures |
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PERSONAL INCOME TAX METHOD |
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Taxable
Income |
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$60,000 |
$100,000 |
$120,000 |
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| Medical Expenses* |
4,750 |
4,750 |
4,750 |
| Deduct 3% of Taxable income to a max of
$1,770** |
1,770 |
1,770 |
1,770 |
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| Eligible Medical Expenses |
2,980 |
2,980 |
2,980 |
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| Medical Tax Credits |
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| Federal 16% |
477 |
477 |
477 |
| Ontario 6.05% |
194 |
194 |
194 |
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| Tax Credit |
671 |
671 |
671 |
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| Net After Tax Cost |
4,080 |
4,080 |
4,080 |
| ** based on 2003 ITA |
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MCGILL PHSP METHOD |
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Taxable
Income |
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$60,000 |
|
$100,000 |
|
$120,000 |
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| Eligible Medical Expenses* |
4,750 |
|
4,750 |
|
4,750 |
| Tax @ marginal rate |
39.00% |
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44.00% |
|
46.00% |
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| Medical Tax Credits |
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| Tax Credits |
1,853 |
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2,090 |
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2,185 |
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| Net After Tax Cost |
2,898 |
|
2,660 |
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2,565 |
| McGill PHSP ADVANTAGE |
1,182 |
|
1,420 |
|
1,515 |
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McGill Financial Services
and Manulife Financial working for the self-employed and small business
person. |
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