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Question

Looking for written material on a tax write off for out of country medical travel insurance.  Spoke with a nice government employee this morning who found the information I need under Canada Revenue CRA.B.C.ca.  Then he searched through the income tax act 118.   ?????  Being a a Senior, it went right over my head.

He mentioned section 118.2 (2) (Q)

Can you locate this information & e mail it to me?

Please & Thank Zhou.

XXXXXXX

Answer

Hi XXXXXX

The following CRA document should help: 2007-0229901E5 discusses the eligibility of medical travel insurance premiums for purposes of the medical expense credit. The eligibility for a “credit” (medical expenses are not available as a deduction) are contained in s.118.2(2)(q) as you mentioned.

Make sure however that the plan meets the definition of a PHSP outlined in the document and that if any of the premium covers additional non-eligible medical expenses the full amount may be denied.

Other documents to consider are also outlined in the enclosed document e.g. related IT tax bulletins.

Hope that helps.

Cheers

Phil

Phil Hogan

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@hutcheson.ca or via telephone at 250-661-9417. You can also read more about Phil at Hutcheson.ca/phil.
Phil Hogan

One response to “Does Medical Travel Insurance Qualify as a Medical Expense Credit?”

  1. MA says:

    This article
    http://www.snowbirds.org/csanews-83
    suggests that the medical portion of travel insurance IS in fact a tax credit even if there is a non-medical portion.

    What is the difference between the snowbirds’ insurance (Medipac?) and other travel insurance?

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The information contained in this article is for general use only and should not be viewed as professional advice. Accounting and tax rules and regulations regularly change and individuals should contact a competent professional to obtain accounting and tax advice based on their specific situation.

Phil Hogan

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@hutcheson.ca or via telephone at 250-661-9417. You can also read more about Phil at Hutcheson.ca/phil.
Phil Hogan

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