Income Tax Deductions
It is assumed that a retiree’s income tax return is prepared by either a professional accounting service, a tax filing service or independently using tax filing computer software. The following is general information only and is not tax advice, interpretation of tax regulation law or instructions for filing personal income tax returns.
This information is provided to remind retirees to:
a) keep prescription and medical service receipts and
b) check the income tax printouts to be sure that your tax deductions have been recorded.
Medical insurance premiums that you pay can be claimed as a medical expense deduction in your income taxes at both federal and provincial level. You will find the amount that you paid for the year on the December 1 statement (or pay slip) that you received from RBC Investor Services (“Medical Deduction”).
Medical Expenses
(Quebec income tax only)
1) In Quebec the Health Care premium paid by the employer (IATA) is a taxable benefit which means it is an addition to your pension income.
2) The portion of Health Care Premium (50%) that a retiree pays (IATA pays the other 50%) is a Medical Expense
3) The annual charge by RAMQ Prescription Drug Insurance Plan is a medical expense. In Quebec the charge for the current year can be claimed as a medical expense. For Federal income and expense reporting, the RAMQ charge for the previous year is reported as a medical expense.
4) The total of all amounts paid by a retiree for prescription medication (Cost of medication less the portion paid by RAMQ, less the portion paid by private Health Care insurance, equals the amount paid by the retiree) as well as for Medical Services (the amount charged by the service provider LESS the amount paid or refunded by Manulife) is a medical expense.