Tax deductions and credits all physicians should know about

April 9, 2019 Jared D'Souza
  1. Carrying charges
  • Deduct the investment fees you pay on non-registered accounts.
  1. Medical expenses
    1. Many medical expenses aren’t obvious: medically required gluten-free products, eligible travel expenses and driveway alterations, to name a few.
  2. Moving expenses
    1. If you move more than 40 km away for practice, med school, or further studies, claim the costs of a moving truck, hiring movers, and temporary living expenses—among other costs.
  3. Interest on student loans
    1. Claim this 15% federal tax credit on the interest you pay on student loans.
  4. Childcare expenses
    1. Do you pay childcare expenses so you can practise or go to school? They could be for daycare, nursery school, caregivers (nannies) and even camps.
  5. Caregiver amount
    1. If you provide care to a spouse or a low-income eligible dependant with a physical or mental impairment, you can claim the caregiver credit even if you’re not living in the same place.
  6. Charitable donations
    1. Donations to registered charities qualify you for a tax credit based on the amount. Pool your donations with your spouse to maximize the credit.
  7. Professional dues
    1. Your membership dues to accredited associations or your college of physicians and surgeons can be deducted.
  8. Home buyers’ amount
    1. If you’re a first-time homebuyer, you can claim this tax credit, which is worth $750 in tax savings.
  9. Disability tax credit
    1. If you have a severe and prolonged mental or physical impairment as certified by a medical practitioner, you could be eligible for this credit. You can transfer any unused amounts to your spouse.

Tax planning can be complex, but it's worthwhile to ensure you're claiming all the tax deductions and credits that you're eligible for. An MD Advisor* can help you make sure that your financial plan is as tax-efficient as possible.

md.ca

* MD Advisor refers to an MD Management Limited Financial Consultant (Investment Advisor in Quebec) or your MD Private Investment Counsel Portfolio Manager.

The information contained in this document is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals. Employees of the MD Group of Companies are not authorized to make any determination of a client’s U.S. status or tax filing obligations, whether foreign or domestic. The MD ExO® service provides financial products and guidance to clients, delivered through the MD Group of Companies (MD Financial Management Inc., MD Management Limited, MD Private Trust Company, MD Life Insurance Company and MD Insurance Agency Limited). For a detailed list of these companies, visit md.ca. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies.

 

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