E.H.B. vs. Tax Return
Comparison with the medical expense deduction available on your personal income tax return.
Consider the following example:
Annual net income: $55,000
Medical expenses: $ 1,800
| Without EHB |
|
Utilizing the EHB program |
| Medical expenses $1,800 |
|
$1,800 Medical Expenses
(Extended Health & Dental) |
| (3% of net income) $1,650 |
|
$ 180 Adjudication fee (10%) |
| $ 150 |
|
$1,980 |
| |
|
|
| Tax Credit1 $ 35 |
vs. |
$1,980 Tax Deduction. |
1 Based on a combined Provincial and Federal rate of 23.22%
Since medical expenses are reduced by 3% of your net income, the medical expense tax credit deduction is of little use to many taxpayers.
_________________________
1Medical Expense Tax Credit equals 16% of qualifying medical expenses in excess of the lesser of $1,755 or 3 per cent of net income.
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