Comments on: Taxable Employment Benefits

By: Tax Guy

Tax Guy — Thu, 17 Mar 2011 14:04:37 +0000

Corey,
If your fiance paid the premiums for the private medical insurance directly or through payroll deduction, this is claimed as a medical expense tax credit.

Reimbursements from the plan are neither taxable income nor an expense allowed under the medical expense tax credit.

By: Corey

Corey — Thu, 17 Mar 2011 03:16:13 +0000

Hello,

I am doing my fiances Income taxes and has insurance for her medication, etc. She claimed and received a lot of medication, chiropractor, dentist, etc. benefits. I am having trouble finding where to put those re-imbursements on her return. Would those benefits already be on her T4 from her employer or should she ask the insurance provider for something?

Any help would be appreciated.
Corey

By: Tax Guy

Tax Guy — Fri, 11 Mar 2011 15:32:33 +0000

The reimbursement from the employer is a taxable benefit if paid directly. If it was through a private health insurance plan, it would have been tax free.

You can claim the expense as under the medical expense tax credit.

By: Gary

Gary — Fri, 11 Mar 2011 03:59:35 +0000

My wife went out of town for medical reasons and her medical covered these expenses, but when she got her paycheck, they reimbursed her for her travel expenses under gross so it was then taxed. Is that correct?

By: Tax Guy

Tax Guy — Wed, 09 Mar 2011 22:06:41 +0000

Yes they are a taxabale benefit.

By: Joanna

Joanna — Wed, 09 Mar 2011 20:00:16 +0000

I know the employer paid group life insurance premiums for employees are taxable benefits but what about the dependent life insurance? Is the employer paid dependent life insurance a taxable benefit as well?

By: Tax Guy

Tax Guy — Wed, 09 Mar 2011 09:36:40 +0000

DB,
You cannot claim the tuition credit nor the education amount.

By: Tax Guy

Tax Guy — Tue, 08 Mar 2011 23:13:37 +0000

The trip is going to be a taxable benefit and that would include the amount of your spouses trip as well. The fair market value is very simple, the flight had a cost to the company and so did the hotel. Both of which would be included in your income as a taxable benefit.

By: DB

DB — Tue, 08 Mar 2011 23:08:58 +0000

Just to be clear, that means that the deduction for the number of part time/full time months does not qualify either?

By: Charis

Charis — Tue, 08 Mar 2011 21:51:00 +0000

Hi,

I received a sales trip from my work as a reward for a successful past year. Is this a taxable benefit if the trip had the following criteria:
- no choice in dates of when the trip could be taken
- evening events and awards ceremonies arranged every night by the company
- is the cost of my spouse’s flight included as a taxable benefit

if this is a taxable benefit, how is the fair market value of the flight and hotel calculated? I paid for the same amount of nights (to extend) and 2 extra tickets (company pays for myself and spouse and I paid for additional family members) and my cost was about 30% of what my company reports as a taxable benefit in box 40. The cost of the hotel was a special group rate. would the fair market value be what the normal rate per night is?

thanks

Thanks