Tax Advantages

To The Self-employed Individual

All health, medical, dental and vision care expenses for the self-employed individual, the individual’s spouse and dependent children, can be deducted from the business income.

Any amounts received are not taxable in the hands of the employee, spouse or children.

Amounts are deductible to the extent of $1,500 for each of the individual, their spouse, members of their household, and $750 for each of the individual's children under 18 years of age, on an annual basis.

To The Incorporated Business Owner

All health, medical, dental and vision care expenses for the business owner and the employees, as well as spouses, and dependent children, can be deducted from the business income.

Any amounts received are not taxable in the hands of the employees, spouses or children.

Previous legislation to the 1998 Budget allowed for similar deductions (albeit higher) to be made by the corporation.