That’s been a useful introduction to the medical expense tax credit you can see that it’s a fairly tough T who is credit in practice I wish it were easier I wish that we could claim it from maybe the first dollar of medical expenses.
But it’s not so so it is important to understand it because of its particular limitations and because we see that a little bit of planning here can maybe open up some opportunities that we would not have otherwise considered thank you very kindly and I hope you enjoy.
Your continued studies hi and welcome back to the business career college video series in this video we’re going to look at private health services plans P HSPs it’s not a term that you run into much in practice.
But you’ll more often see in practice is the health spending account or healthcare spending account and these are essentially just practical ways of implementing a PHS P on a or sometimes you’ll see a cost plus arrangement so.
These are all various arrangements that use the HSP rules or healthcare spending account now the PHS P rules are actually designed originally to take care of this situation where we have an employer so.
This is the rules in their base form the employer pays premiums for a health insurance plan for an employee and then the employee uses those benefits tax-free so it’s a tax-free benefit but with the premium.