T4 Code 85 — Employee-paid premiums for private health services plan
PHSP premiums you paid through payroll — eligible as medical expenses on Schedule 1 / Line 33099.
At a glance — Code 85
- Box name
- Employee-paid premiums for private health services plan
- T1 line
- Line 33099 — Medical expenses for self, spouse, minor children
- Check against
- Your final pay stub showing cumulative PHSP / extended-health deductions.
What Code 85 means
Code 85 reports the portion of private health services plan (PHSP) premiums that YOU paid through payroll deduction — extended health, dental, vision. Employer contributions to a qualifying PHSP are not a taxable benefit and are not reported here. Code 85 is optional for employers, so a blank does not mean you paid nothing — check your final pay stub, and expect the CRA to ask for supporting documents if the slip is silent.
These premiums qualify as medical expenses on your T1. Claim them on Line 33099 subject to the lesser-of-3%-of-net-income-or-annual-statutory-cap threshold; the cap is indexed annually by CRA and listed in the T1 General Guide for the filing year.
Note: Quebec taxes employer-paid PHSP premiums as a benefit (appears on RL-1 Box J). For federal purposes, only the employee-paid Code 85 portion is claimable.
Tax return implications
- Claim on Line 33099 — adds to total medical expenses pool.
- Only useful if total medical expenses exceed the 3%-of-net-income / annual-statutory-cap threshold; otherwise the amount washes out.
- Most missed credit on T4 — under-claimed because it is not obvious it is medical.
For 2025 returns (file T1 by April 30, 2026 — self-employed June 15)
- Line 33099 medical expense cap (2025)
- $2,834
- Threshold for Line 33099 METC is the lesser of 3% of net income or $2,834. Separately, the refundable medical expense supplement on Line 45200 pays 25% of your allowable expenses up to $1,504, needs at least $4,390 of employment or self-employment income, and is reduced by 5% of adjusted family net income above $33,294. CRA-indexed annually.
Values sourced from central CPP / EI config at build time — update automatically on FY rollover.
FAQ
Do I claim Code 85 every year even if my total medical expenses are low?
Yes, include it in your medical expense pool every year. Even if your own medical is under the threshold, claiming on the lower-income spouse's return may push the combined family medical over the 3%-of-net-income floor.
Related T4 boxes
Code 81 — Placement or employment agency — gross earnings
Gross pay to a self-employed placement or employment agency worker — never included in box 14.
Code 82 — Driver of taxis or passenger-carrying vehicles — gross earnings
Gross earnings paid to a self-employed taxi or passenger-vehicle driver — never included in box 14.
Code 87 — Emergency services volunteer exempt amount
Up to $1,000 of honoraria from volunteer emergency services — exempt from tax; excess counts as employment income.
Box 14 — Employment income
Your total gross employment income for the year before any deductions — salary, wages, bonuses, commissions, taxable benefits and most other pay.
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).
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