Legal Fees to Appeal Travel Health Insurance Denial

[SFitz]

Hello,

In 2022, I paid legal fees to appeal (successfully) a denial of coverage by my Travel Health Insurance company.

Does anyone know if I can write these legal fees off?  If so, where within Ufile would I do this?  As a medical expense?  Or, somewhere else?  

Thank you.

[Geo123]

Hello SFitz,

Please check with the CRA if these legal fees are eligible.

 

**IF they are eligible** please see below :

Legal fees - For purposes other than the recovery of a salary or wages
These legal expenses must be claimed on line 23200 of the Federal return and on line 250 of the Quebec return.

These are costs incurred for the late objection or appeal concerning a notice of assessment issued under the Tax Act on income. They are fees paid to collect a retirement allowance and expenses incurred to make child support payments non-taxable.

While for Quebec residents, these are judicial costs you paid to determine your initial right to receive alimony, and to revise your right to receive alimony. These expenses can be claimed on Federal line 22100.

NOTE: You cannot deduct expenses paid for a divorce or separation.

See the following links for more information:
For Federal:

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-232-other-deductions/line-232-legal-fees.html

For Quebec:

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-250/point-8/

To enter the amount of legal and/or accounting fees incurred for purposes other than the recovery of wages or salaries, please follow the steps below:

1- On the "Left side menu on the Interview tab", select "Interview setup".

2- On the screen to your right, scroll down to "Other topics" group and check the box "Other deduction and credits (includes educator school supply tax credit and home buyers' amount)" and click "Next" at the bottom of the page.

3- Return to the "Left side menu on the Interview tab" and select "Other deductions and credits".

4- On the screen on your right, click on the plus sign "+" icon to the right of the line "Federal Line 23200 - Other deductions (Quebec line 250)".

5- On the page that is generated enter the amount in the field for "Deductible legal fees incurred not related to recovery of salaries or wages".

Bear in mind that some of the fees that are deductible on your Federal tax return may not be deductible for Quebec and vice-versa.

If the Federal amount is different from that of Quebec, enter the Federal amount and click on the "Maple Leaf" icon. An additional field will be generated to enter the amount for Quebec. This box appears only if you previously entered a Federal amount. If you have no Federal amount, then enter ''$0.00''.

This amount will be reported by the program on line 23200 of your Federal return and line 250 of your Quebec tax return, code 08 will be entered on line 249 of the Quebec return.

Note: Please keep all your documents in order to provide on request to the CRA or Revenu Quebec asks for it.