Box 118 Employer paid premiums

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Chris65
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Box 118 Employer paid premiums

Post by Chris65 »

Hello all; I found this site trying to find the answer to my question. On my military pension statement I get deducted from my pension $68 per month for "assisted provincial medical premiums" and on my T4A I have to claim on my taxes, as income, $816 ($68x12). First of all I am confused why it is deducted per month and then reported as income on my T4A, and second I am wondering if that $816 is claimable as a tax deduction for medical premiums? If it is deducted then how can it be income?

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DavidR
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Re: Box 118 Employer paid premiums

Post by DavidR »

Perhaps the $68 per month that you pay only covers half of the cost of the premiums. If the Military is also kicking in $68 every month then that would be a taxable benefit.
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AltaRed
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Re: Box 118 Employer paid premiums

Post by AltaRed »

The OP doesn't say which province he is in, nor if he is paying for a single or a couple. Am guessing he is part of a BC couple from the comment he made, i.e. 'assisted provincial medical premiums'. I think BC is the only province left with health insurance premiums. If so, I think David has it nailed.
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Chris65
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Re: Box 118 Employer paid premiums

Post by Chris65 »

Hi all, and thanks for the replies. I contacted the pension center and they put me on hold while they investigated, it ends up that I am paying $68 and the government is paying $68 for $136 per month, this is 400% higher than what I should be paying. Yes I live in BC and have a wife. So now I have to submit paperwork to the BC government under "premium assistance" and have them correct it, too bad I waited 10 years to finally question this.

But to the answer to my question (DavidR), the $816 per year appearing in box 118 can be claimed as a taxable benefit, does that mean I claim it under medical premiums like I do for my private health care premium and also on line 104? Otherwise, if I just claim it as income it has no tax taken off and only raises my income.
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AltaRed
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Re: Box 118 Employer paid premiums

Post by AltaRed »

Simply enter the amount in Box 118 of the T4A of your tax software. It will perform the calculation.

You do NOT get a tax deduction for provincial health care premiums.... only for extended plans like Blue Cross. Sorry, you cannot deduct any of the $136/month.

Added: Yes, you should be filling out the paperwork for 'health premium assistance'. Depending on your family income level, you may also qualify for Pharmacare drug plan (a certain discount off some prescriptions).

Added yet later: Good news is you can go back 6 years per http://www2.gov.bc.ca/gov/content/healt ... e[quote]If you believe you may have qualified for assistance in recent years but didn’t submit an application, Regular Premium Assistance may be provided retroactively to a maximum of six years from the date on which a request is received. If it appears you are eligible, you will need to provide photocopies of Notices of Assessment/Re-Assessment from the Canada Revenue Agency which show your net income for the relevant tax years. If you are married or living in a marriage-like relationship, photocopies of your spouse’s Notices of Assessment/Re-Assessment will also be required. Please ensure that the assessment document you provide includes the applicable name, tax year and tax return line 236 (net income).[/quote]
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Chris65
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Re: Box 118 Employer paid premiums

Post by Chris65 »

Thanks, I will check out the retroactive reimbursement. I should be paying about $27 per month divided between me and the government, so $13.50 each instead of $68.
Chris65
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Re: Box 118 Employer paid premiums

Post by Chris65 »

Spoke with BC MSP today, I am paying $150 per month in premiums, $68 I pay and the military pays the rest. As long as the military contributes I cannot claim premium assistance. If I stop the military from contributing I can then apply for assistance, however, even after assistance when paying on my own my premium for two adults would be $92 per month; so I am better off paying the $68 and then claiming the box 118 earnings each year.
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