rhino2
New Member

Credits and deductions

The tip is confusing, as a premium payable to the Quebec Prescription Drug Insurance Plan is automatically claimed as a medical expense by TurboTax for the provincial return on which it is paid (i.e. the amount payable on your 2014 return is claimed for 2014 - contrary to the tip), but carried forward for the following year on your federal return (i.e. the amount payable on your 2014 return would be claimed for 2015 - as per the tip). So the tip is federally correct and provincially incorrect.

Premiums paid by the employee to private plans and reported on T4 and RL1 slips are automatically added to medical expenses on federal and Quebec returns respectively. Premiums paid by the employer to private plans are ignored for federal income tax purposes, and do not appear on the T4. They are included in income as a taxable benefit on the RL1 (Box J) and automatically claimed as a medical expense on the Quebec return.