A private health services plan (PHSP) is a plan defined in the Income Tax Act that covers hospital, medical, or dental expenses that would otherwise be eligible medical expenses. Employer group benefits, individual health and dental insurance, and Health Spending Accounts can all qualify when they meet the CRA’s rules — for example, all or substantially all (90% or more) of the premiums must relate to medical expenses. Premiums an employer pays to a PHSP for employees are generally not a taxable benefit. Self-employed people (sole proprietors and partners) can deduct PHSP premiums from business income only if they meet the CRA’s conditions — for example, more than half their income comes from self-employment, or their income from other sources is $10,000 or less — and only up to the CRA’s limits. Otherwise, premiums you pay count toward the medical expense tax credit, which is a non-refundable credit, not a deduction. Confirm your situation with an accountant or the CRA.