Personal Finance

DO LTD premiums qualify as Medical Expense for Taxes

  • Last Updated:
  • Dec 27th, 2010 9:27 am
Member
Jan 2, 2007
445 posts
77 upvotes
Toronto

DO LTD premiums qualify as Medical Expense for Taxes

I know that dental premiums qualify as an eligible medical expenses - but do LTD premiums coming off my paycheque qualify too? Thanks
2 replies
Newbie
Jul 3, 2010
97 posts
16 upvotes
Mississauga
jess24 wrote: I know that dental premiums qualify as an eligible medical expenses - but do LTD premiums coming off my paycheque qualify too? Thanks

According to my accountant, you should not report long term disability premiums in your tax return - because if you get long term disability paymentsin the future, those payments will be taxable benefits if you've used the premiums as a tax deduction. If you do NOT report the premiums as a deduction in your tax return, then if you receive LTD benefits, they will be tax free benefits.
Jr. Member
Nov 25, 2008
107 posts
8 upvotes
jess24 wrote: I know that dental premiums qualify as an eligible medical expenses - but do LTD premiums coming off my paycheque qualify too? Thanks

No, they don't. They are reported as income on Line 40 of your T4 slip. The reason employers do this, even in the case where all other employee benefits are paid for by the employer, is to maintain the tax-free status of the LTD benefit upon receipt. If the employer pays any portion of the LTD premium, then the benefit becomes taxable when it is paid out.

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