Sophie is a self-employed social media consultant with no employees, and is on track to net $60,000 of income this year. Her husband, Cam, is a salaried heavy-equipment operator. Over the course of the year, Sophie had a dental crown procedure ($950) and visited a naturopathic doctor ($180). Cam had a dental checkup ($150), replaced his glasses ($320), and is taking medical cannabis for occasional migraines ($350).
Their total health and dental costs for the year were $1,950. How can they reduce their costs?
Option 1: Submit receipts to an accountant.
Sophie and Cam submit all their health and dental receipts to their accountant, but only receive a $32 tax credit when they file their tax return.
Option 2: Use a traditional health and dental benefits plan with monthly premiums.
Sophie is 35 and Cam is 37, so their monthly premiums for a decent health and dental benefits plan is $195/month, or $2,340/year. They submit their health and dental receipts to the plan provider and receive a reimbursement of $820. They also receive a tax refund of $660 for the monthly premiums they paid.
Their benefits plan does not cover medical cannabis, so they did not receive any reimbursement for those expenses.
Sophie and Cam paid $2,340 for their health and dental benefits plan, but only received $1,480 of benefits, so they lost money by paying more into their plan than it was worth.
Option 3: Use the Entrepreneur Health Flex Plan.
Sophie and Cam submit their health and dental receipts to their Entrepreneur Health Flex Plan provider, convert their expenses into a $2,334 tax deduction, and receive a tax refund of $658.
This option gives them the most savings!