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Medical Expense Tip for Quebec
Just a tip for Quebec Residents:
Turbo Tax always tells me that my medical expenses must exceed a certain threshold (3% of family income) before qualifying for a deduction. It is always a good idea to enter medical expenses even if they are nowhere near the 3%. I have been surprised that even $100 of medical expense results in a small credit on Quebec taxes. The reason is that in Quebec Employer Paid private medical plan fees are taxable by Revenu Quebec but the amount can also be claimed as a deduction and it counts toward the 3% threshold. A good employer paid medical plan can cost $2000 per year and that covers the 3% of $65,000 income. The amount appears on the RL-1 form (Item J) and Turbo tax automatically calculates the credit but we have to ignore the messages about not exceeding the 3% (because the amount should not be entered as a receipt if it is already on the RL-1).