HSA Glossary
Clear definitions for Canadian Health Spending Account terms. No jargon, no confusion.
Health Benefit Terms
HSAHealth Spending Account
A benefit plan that lets your corporation reimburse you for medical expenses. All reimbursements are tax-free for you and tax-deductible for your business.
HCSAHealth Care Spending Account
Another name for an HSA. Some providers use this term, but HSA and HCSA mean the same thing in Canada.
Tax Terms
METCMedical Expense Tax Credit
A personal tax credit you can claim for medical expenses that exceed a threshold (3% of income or ~$2,759). Unlike an HSA, you only get a partial credit, not full reimbursement.
CRACanada Revenue Agency
The government agency that sets the rules for what medical expenses qualify for tax benefits. They determine which expenses can be reimbursed through an HSA.
Business Terms
Owner-operator
A business owner who also works as an employee of their own corporation. To qualify for an HSA, owner-operators need to pay themselves a salary (not just dividends).
Eligible expenseCRA Eligible Medical Expense
Any medical expense that the CRA allows to be claimed through an HSA or for the Medical Expense Tax Credit. Includes dental, vision, prescriptions, physiotherapy, mental health services, and many more.
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