- Tuition Tax Credits: Resident physicians can claim non-refundable tuition tax credits for fees paid during residency. This includes a range of fees like admission, application, and mandatory computer service fees. Unused credits from medical school can be carried forward to reduce taxes payable.
- Interest on Student Loans: A 15% federal non-refundable tax credit is available for interest paid on student loans under specific Canadian loan acts. Despite a temporary halt on interest accrual on federal student loans until March 31, 2023, any interest paid in 2022 is eligible for this credit. It’s possible to claim this credit for any of the past five years if it wasn’t claimed before.
- Moving Expenses: If a move of at least 40 kilometers was made for work, the associated moving expenses are deductible. This includes transportation, storage, travel expenses, and costs related to selling or purchasing a home.
- Union, Professional, and Membership Dues: Membership fees for medical associations and the college of physicians and surgeons, as well as union dues to provincial residency associations, are generally tax-deductible. Malpractice premiums paid to the Canadian Medical Protective Association are also deductible under certain conditions.
- First-Time Homebuyers’ Amount: A federal non-refundable tax credit is available for first-time homebuyers, equivalent to 15% of up to $5,000. To qualify, neither the individual nor their spouse or common-law partner should have owned a home in the current or four preceding years.
- Child-Care Expenses: Costs for daycare, babysitters, and full-time caregivers are deductible up to $8,000 per year for children under 7 and $5,000 for those aged 7 to 16. Generally, the lower-income spouse or partner must claim this deduction.
- Medical Expenses: Medical expenses not covered by insurance, including dental and eye care, can be claimed as a 15% federal non-refundable tax credit. The claim is on expenses exceeding the lesser of $2,479 or 3% of net income.
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