Mandatory professional liability insuranceYou can deduct the premiums for mandatory professional liability insurance to keep your professional status recognized by law.
It should be noted that if you were reimbursed by your employer, the CRA considers that the amount is not taxable if it has been determined that membership in a professional association is a condition of employment. Therefore, the amount will not be shown in Box 44 of the T4 slip. Also, since it is fully refunded, you cannot claim it on your tax return.
To deduct the premiums for mandatory professional liability insurance, follow these steps:
1. On the "Left side menu on the Interview tab", select "Interview setup".
2. On the right-hand side of the screen, in the group "Employment and other benefits", check the box for "Union or professional dues not on T4 slips" and click "Next" at the bottom of the page.
3. Return to the "Left side menu on the Interview tab" and select "Union/professional dues".
4 - On the screen to your right, click on the plus sign "+" icon located to the right of the line "Mandatory professional liability insurance".
5 - On the page entitled "Union or professional dues", on the line "Mandatory professional liability insurance" enter the premium without taxes.
6 - On line "Do you wish to claim the GST/HST rebate (Form GST-370)?" Answer "Yes" if you paid the GST on this premium. Please check with the insurer because in principle there is no GST on insurance premiums.
7 - On the line "Do you wish to claim the QST rebate (form VD-358)?" You can answer "Yes (QST number required)".
8 - On the next line, enter the tax number of the insurer.
9 - On the line "Amount (including GSE and QST) that is eligible for the QST rebate" enter the amount of the premium plus 9%. Only in Quebec, the insurance tax that can be claimed is 9%.
The amount will be reported on line 21200 of the federal return. For residents of Quebec, the amount of mandatory professional liability insurance will be reported on line 207 of the Quebec return, with Code 08 displayed on line 206.
For more information, consult the following links:
For the CRA:
For Revenu Québec:
Finally, note that the program will generate forms GST 370 (GST) and VD-358 (QST). These forms indicate the calculation for the GST and QST rebates.
Please note that the refund of taxes is taxable both at the federal and Quebec levels. The amount refunded will be carried forward to your file for the next tax year and will be added to your income.
You can view all by selecting the tab ''Tax return'' and in the left column, choosing the line ''Summary of carryforward amounts''.
ID: 20191002101721DEXXX.xml
Webpage: KPA310-20191002101721DE.htm