Union, Professional, and Other Dues for Medical Residents

Medical residents, for the most part, function as employees. This means that the deductions they can avail are more limited compared to self-employed doctors. Nevertheless, medical residents have the privilege to deduct certain union, professional, and other similar dues. Here’s a breakdown of the most frequent deductions in this category:
- Professional Association Dues: If you’re a medical resident, you can claim deductions for dues and fees paid to professional associations. However, this is only valid if these payments are essential for maintaining a professional status acknowledged by law. For instance, annual dues paid to the College of Physicians and Surgeons of Ontario (CPSO) are deductible. But, it’s worth noting that dues for OMA/CMA might be rejected by the CRA as these fees are obligatory for all doctors, excluding residents and fellows.
- Malpractice Liability Insurance: Annual membership dues for this insurance are deductible, but only if these insurance premiums are mandatory to uphold a professional status recognized legally. As an example, the premiums given to the Canadian Medical Protective Association (CMPA) can be deducted. However, this amount should be reduced by the CMPA quarterly reimbursement received.
- Union Dues: If you’ve paid annual dues to a union, these can be deducted. The condition here is that these fees should be related to the regulation of relations between employers and employees and must be essential for maintaining a professional membership. For instance, dues paid to the Professional Association of Residents of Ontario (PARO) are deductible. You can find the PARO dues reported in box 44 of your T4 slip.