Medical Expenses & PHSP | McEvoy Lelievre | Ontario, Niagara Tax & Chartered Accountant

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Can I deduct my medical expenses? What is a PHSP?


As a taxpayer, yes, you are entitled to claim the medical expense credit. However, if you are a business owner, there are much better options for you and your family.


Depending on how much the business owner and their family spend on medical expenses in any given year, it is likely well worth your money to set up a “Private Health Services Plan (PHSP)”.

This can take the form of medical insurance or a health spending account.

The key difference here is that, when claimed on the personal tax return, medical expenses are subject to reductions based on how much income you had.

If your income is anything other than low, you will have to spend quite a bit in order to get even a little bit back.

If you set up a PHSP, you can deduct your medical expenses (insurance premiums or HSA contributions) are a deduction on your business statement, and you save income tax based on whichever tax bracket applies to you.

For more information on setting up a PHSP, please contact our office.

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