Ontario health and taxes for CR1

[mike777 0]

Hi, I actually posted this in another taxes thread but I think it got lost in the fray so I'm posting it here.

Question,. Wife and I are border town folk. I american, she Canadian. We're waiting on CR1. She will continue to work for her current employer in Canada so she'll be commuting back and forth to work everyday.

I work for a small business and my health insurance coverage isn't that great, and it's expensive. I may add her on, depending on if she can't pay into a plan through her employer, like us Americans typically do. I know she currently pays into dental but as far as health we're waiting on the benefits person to get back to us.

Anyways, OHIP only covers those residing in Ontario, once she moves, shes done right? In saying that, as soon as she moves, isn't there someone over there we can notify saying, hey my wife doesn't live in Ontario anymore, please stop deducting X amount from her income taxes on her paychecks? Does it work that way? Don't tell me she has to continue paying for something shes ineligible for.

Or, can she still have perm residency here, somehow make her perm address or residence at her parents and still receive OHIP and be able to use it in the US?

Thanks.

[trailmix 77]

I did answer in your other thread - Canadians pay as a group for our universal health care - she cannot opt out of paying those taxes - it is totally unlike the American system of single user pay.

She isn't really a resident in Canada - so I don't see how she could still qualify for OHIP.

Even if she could, you wouldn't want to use it in the U.S. as the amount they would pay for an out of country claim would be so small as to be useless and would only apply to things that were completely unexpected - like if she fell off the curb and broke her leg.

[mike777 0]

I did answer in your other thread - Canadians pay as a group for our universal health care - she cannot opt out of paying those taxes - it is totally unlike the American system of single user pay.

She isn't really a resident in Canada - so I don't see how she could still qualify for OHIP.

Even if she could, you wouldn't want to use it in the U.S. as the amount they would pay for an out of country claim would be so small as to be useless and would only apply to things that were completely unexpected - like if she fell off the curb and broke her leg.

Hey TM, maybe I looked too quick. I didn't see the response. sorry.

So she's going to be uneligible and still have to pay? That's like stealing! lol Sure we all pay for a lot in our taxes but we're still at one point going to be eligible. Like social security, I'm paying now, not eligible, but someday I can use it..."if it's still there" lol

But anyways, So bottom line is, shes going to have to pay for her OHIP, even while living in the states, and I'm still going to have to cover her under my insurance?

[canadian_wife 1,822]

Yes, she'll have to pay but be inelligible to receive OHIP. Welcome to the world of socialized medicine.

OHIP - if able to be used in the US (only the case when a Canadian resident is living in the US) will only cover a portion of the cost. OHIP will only chip in the same amount that they would if the resident is living in Ontario. For example, if she falls off the curb and breaks her leg in Ontario - OHIP would pay the $2000 to fix her up. If she falls and breaks her leg in the US, OHIP still only pays $2000, even though the total bill may be $10,000. Best to put her on your insurance as soon as possible. Alternatively, have her get a job in the US.

Good luck

Edited January 20, 2010 by canadian_wife

[mike777 0]

Yes, she'll have to pay but be inelligible to receive OHIP. Welcome to the world of socialized medicine.

OHIP - if able to be used in the US (only the case when a Canadian resident is living in the US) will only cover a portion of the cost. OHIP will only chip in the same amount that they would if the resident is living in Ontario. For example, if she falls off the curb and breaks her leg in Ontario - OHIP would pay the $2000 to fix her up. If she falls and breaks her leg in the US, OHIP still only pays $2000, even though the total bill may be $10,000. Best to put her on your insurance as soon as possible. Alternatively, have her get a job in the US.

Good luck

WOW, something needs to be changed in the system. That's total bull. That ain't happening, ah well.

[mike777 0]

WOW, something needs to be changed in the system. That's total bull. That ain't happening, ah well.

I would suggest to her to work somewhere in the states, maybe someday. But we plan on having children after she moves state side and we found out through her employer that even though shes moving, as long as she works for them, she can get maternity, and I guess maternity time in Canada is MUCH MUCH more than what the US gives. If it wasn't for that, I'd say, just get a job here.

[trailmix 77]

Hey TM, maybe I looked too quick. I didn't see the response. sorry.

So she's going to be uneligible and still have to pay? That's like stealing! lol Sure we all pay for a lot in our taxes but we're still at one point going to be eligible. Like social security, I'm paying now, not eligible, but someday I can use it..."if it's still there" lol

But anyways, So bottom line is, shes going to have to pay for her OHIP, even while living in the states, and I'm still going to have to cover her under my insurance?

I don't personally think it's stealing - like you said, we all pay for a bunch of stuff in our taxes - lots of stuff we probably don't use even - taxes are for the 'common good' - not the individual good.

[neiks 19]

HI Mike,

I am in the same situation as your wife, I am a PR resident of the US and still work in Canada.

First of all, no she won't be eligible for provincial medical. Second, she probably will still be taxed on her income as if she was still a Canadian resident. Big bummer - but that's the way it is.

I know she currently pays into dental but as far as health we're waiting on the benefits person to get back to us.

I know with my extended medical benefits that I have through work that I am still eligible for dental coverage plus I have added my American husband and kids to my family dental plan. Only thing is that we go to the dentist in Canada. As for any other medical services (drug benefit, massage thearapy, etc) I have to be eligible on a provinicial health plan, so I don't quailify for them. My benefits are employer paid so I'm not out anything out of my pocket.

Good luck. And if you have any more questions on your wife working in Canada and living in the US I'd be happy to help if I can. I've been doing it for 3 years now.

[mike777 0]

I don't personally think it's stealing - like you said, we all pay for a bunch of stuff in our taxes - lots of stuff we probably don't use even - taxes are for the 'common good' - not the individual good.

We're getting into political differences here now lol uh oh. I realize that taxes are necessary, but what I'm describing in my wifes case, where shes going to have to pay is bologna. Taxes in general, one should only pay for what services one can use. Like social security, sure, I'm paying into it, but I also expect to reap the benefits of it, just like the next man. But I'm not a politico here so I digress.

[LiLMermaid 2]

WOW, something needs to be changed in the system. That's total bull. That ain't happening, ah well.

Not really...there isn't that many people who live in the states and then work in Canada so I can't see changing a system that works to accomadate a few that leave the country and still want to continue to work here. Ohip isn't deducted seperately from your paycheck anyways. Its part of the 'income tax deducted'.

[mike777 0]

Not really...there isn't that many people who live in the states and then work in Canada so I can't see changing a system that works to accomadate a few that leave the country and still want to continue to work here. Ohip isn't deducted seperately from your paycheck anyways. Its part of the 'income tax deducted'.

I've never seen one of my wifes paychecks, but say a person earns 500 a week, what would they be earning after taxes are deducted, ballpark, in Canada.

[LiLMermaid 2]

Heh...its kinda amusing that you're offended that she may have a small amount deducted still to pay for Canadian healthcare while she holds a Canadian job and enjoys the benefit of a Canadian extended maternity leave. Apparently to get those rewards she's gonna have to pay a percentage for it.

I've never seen one of my wifes paychecks, but say a person earns 500 a week, what would they be earning after taxes are deducted, ballpark, in Canada.

Be easier to ask your wife. Not just taxes are deducted but also IE, cpp etc.. Go to Revenue Canada website and they have a calculator there that will give you an idea.

[neiks 19]

Hey Mike, There is definately the ups and downs to it. Yes, paying taxes is a down one but yes the maternity is an up.

I would suggest to her to work somewhere in the states, maybe someday. But we plan on having children after she moves state side and we found out through her employer that even though shes moving, as long as she works for them, she can get maternity, and I guess maternity time in Canada is MUCH MUCH more than what the US gives. If it wasn't for that, I'd say, just get a job here

.

I am on my year long maternity leave right now and let me tell you, your wife will be the envy of every mother in the US. Also, if she is still be taxed in Canada as "factual resident" she may also still be entitled to colled the Child Tax Benefit and Universal Child Care Credit. So yes, she still paying the tax but she still may be able to benefit some.

The whole working in Canada and living in the US is something your wife is going to have to weigh the pros and cons about. Can she get the same paying job in the US that gives the same benefits or is it worth paying Canadian taxes.

Edited January 20, 2010 by neiks

[mike777 0]

Heh...its kinda amusing that you're offended that she may have a small amount deducted still to pay for Canadian healthcare while she holds a Canadian job and enjoys the benefit of a Canadian extended maternity leave. Apparently to get those rewards she's gonna have to pay a percentage for it.

Be easier to ask your wife. Not just taxes are deducted but also IE, cpp etc.. Go to Revenue Canada website and they have a calculator there that will give you an idea.

Ya I'll ask her.

Well, thats what her employer said. lol, hey, we all want our cake and to eat it too! And I'm going to try my hardest to eat my cake and enjoy it :-)

[trailmix 77]

I've never seen one of my wifes paychecks, but say a person earns 500 a week, what would they be earning after taxes are deducted, ballpark, in Canada.

The tax on that, for Ontario (it varies by province), for 2010 would be about $61 - only taking in to account the basic non-refundable tax credits.