Mandatory professional liability insurance
You 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:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-212-annual-union-professional-like-dues.html
For Revenu Québec:
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-207/
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
