Health
Can I write off Private Health Services Plan (PHSP) in Canada?
YES (CONDITIONAL)
Explanation
Sole proprietors can deduct premiums for private health insurance if more than 50% of their income is from self-employment OR their non-business income is under $10k. There are annual caps on the deduction amount.
💡 Pro Tip
Consider using a third-party PHSP administrator. You pay your medical bills, they reimburse you 100% tax-free, and the business claims the full cost plus an admin fee as a business expense.