Revenue Canada Health Spending Account

A health spending account is a special type of bank account it s actually a trust account established under canada revenue agency rules that allows a canadian tax payer to set aside a portion of their gross income before tax pay no tax on this money and then deposit the full amount into an account to be used exclusively for the family s health care spending.

Revenue canada health spending account. The canada revenue agency cra is always on the lookout for tax schemes and opportunities to warn canadians about them. Yet a decade after that legislative change most canadian taxpayers have never heard of a health spending account. A health spending account is an alternative to traditional health insurance. It found one third 33 per cent of employers offered these accounts in 2018.

Health spending accounts hsa are self insured private health services plan phsp benefits arranged by employers for their employees residing in canada private health services plans are described in canada revenue agency cra income tax bulletin it 339r2 meaning of phsp for health and dental care expenses described in income tax bulletin it 519r2 medical expenses. O ver a decade ago the federal government made provisions in legislation that would allow individual canadian taxpayers to set aside pre tax earnings for the express purpose of health care spending. Health care spending accounts. Since a health care spending account is designed to be a plan of insurance the amount of credits in a health care spending account as determined by the amount of flex credits applied to this benefit option as a result of an employee allocation sets a ceiling on the amount that can be claimed under the plan of insurance.

Save on taxes by getting a canada health spending account. Canada revenue agency eligible health spending expenses acoustic coupler prescription required. Health care spending accounts are gradually gaining popularity according to the 2018 sanofi canada health care survey. A health care spending account hcsa also known as a health spending account hsa is an individual employee account that provides reimbursement for eligible health care expenses or other benefits that are not covered under provincial health insurance plans or other benefit plans sponsored by the employer.