The Canadian Revenue Agency has announced that there are new changes to the tax filing system – in line with the recent changes to oral health in Canada. Specifically, this relates to the Canadian Dental Benefit and subsequent Dental Care Plan. The changes have implications for tax filing, with employers particularly impacted. Understanding the changes are very important.
The Canada Revenue Agency (CRA) has changed its rules around tax filing, in line with the upcoming implementation and rollout of the Canadian Dental Care Plan [1].
This has major implications for tax filing and reporting. Employers are the main group being impacted by the updates.
Knowing about these changes are important, and it will ensure that any dental-based costs are reported on your tax return, meaning that it won’t cause unexpected problems.
The changing face of Canadian oral healthcare
These changes are part of an ongoing overhaul of oral healthcare in Canada. Over the last year, the Canada Dental Benefit has been in operation – which has provided financial support towards oral healthcare to the families of eligible children [2].
However, the Canadian Dental Care Plan is being rolled out, which will provide assistance to low- and medium-income families across Canada towards their oral health costs [2]. These changes have made it necessary for changes to tax filing in Canada.
This is part of the Canadian government’s commitment to working towards a fairer and more equitable approach to oral healthcare. This should include eliminating cost and other access issues.
The plan will extend dental coverage, especially to those who do not have insurance. Families with a net income of below $90,000 are being targeted for the plan.
Update in the tax filing process
These changes continue to alter the landscape of oral healthcare in the country. Therefore, the Canadian government is updating its tax filing process – especially for those with dental care benefits. Dental care details will now be included in tax filing [1].
By introducing the dental care section into tax filing, the Canadian government is hoping to underline its dedication towards enhancing the accessibility of oral healthcare [1].
These changes have proven favorable, with a previous report finding that 93% of Canadians favored or were open to a tax credit for businesses that offered dental benefits to their employees [1].
Employer requirements
Moreover, it is employers that will need to make the most changes. Employers will need to adhere to the new reporting measures in order to avoid incurring penalties [1].
Furthermore, employers will need to make such changes starting with the 2023 tax year. Employers will need to provide detailed information about dental benefits on the T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity, and Other Income slips [1].
On the T4 slip, Box 45, “Employer-offered Dental Benefits”, has been added. Furthermore, on the T4A slip, Box 015, “Payer-offered Dental Benefits”, has been added [1].
The CRA has confirmed that this is a compulsory activity [1]. The reporting will include information on if employees or their family members were eligible for dental coverage or insurance through employment in that tax year [1].
Summary
By complying with the new tax filing measures, employers can play their part in supporting dental care across Canada. The overall effort towards more equitable oral healthcare will require effort from multiple people.
When filling out tax returns, it is important for Canadian citizens to carefully look at each section – especially those that have recently been added.
Thinking points…
[1] With the rollout of the Canadian Dental Care Plan underway, many people are planning on waiting until they are eligible before next attending a dental check-up. However, it is expected to be a while before everyone becomes eligible. It isn’t worth risking your oral health, so make sure you attend a check-up soon! This will ensure any problems are treated, without them worsening over time. We recommend booking an appointment now!
[2] With so many of us needing to fill in a tax return, this is a very useful article! Can you think of anyone that needs to know this information? It could be a friend, family member, or someone that you know who runs a business. If so, feel free to share this article with them, as it could be really helpful! We recommend sharing this article now!
What we offer at Savanna Dental
Savanna Dental is a Calgary dental clinic that provide its patients with a wide range of dental treatment options and advice aimed at improving their oral health.
We advise our patients to attend our Calgary dental clinic at least twice per year for a regular dental check-up. At these check-ups, we provide a comprehensive review of a patient’s oral health. If any problems are detected, we have many treatments available. For example, these include cavity fillings and root canals. To strengthen your oral health, we recommend brushing your teeth at least twice a day and flossing regularly.
Here at Savanna Dental, we also have some cosmetic treatments available! These include dental implants, teeth whitening and Invisalign™! Our patients find that these treatments have a positive impact on their appearance, confidence and self-esteem.
Moreover, the fees of our treatments at our Calgary dental clinic Savanna Dental are set in line with the Alberta Dental Fee Guide. This ensures transparent and fair pricing, with no hidden costs.
We hope to see you soon at our Savanna Dental clinic in Calgary! You can find out more about us by visiting our website https://savanndentalclinic.ca.
References
[1] TNMSC Magazine. (2024). CDCP: CRA Mandates Dental Care Reporting While Filing Taxes. Available: https://www.tnmsc.com/upcoming-canada-dental-care-plan-news/. Last accessed: 26th January 2024.
[2] Health Canada. (2023). The Canadian Dental Care Plan. Available: https://www.canada.ca/en/health-canada/news/2023/12/the-canadian-dental-care-plan.html. Last accessed: 26th January 2024.
