What deductions am I able to make against my income?

Medical students and residents are a busy bunch. With long hours and a hectic schedule, figuring out your tax filings can slip down your priority list.

Medical students and residents typically ask about five topics: deductions against your income, moving expenses, impact of extra income, reducing taxes on salary and the benefits on incorporation.

In a five-part article series, we are looking at each of these topics, providing guidance for you to maximize your money.

What deductions am I able to make against my income?

Residency and years of school can lead to large amounts of debt for medical students. Cash flow can be hard to come by with the long hours of studying or residence work.

On the money you do earn, many are curious about the deductions you can claim to minimize taxes. A few common expenses students can claim include eligible tuition and exam fees (including international fees), interest on eligible student loans and professional membership fees. Deductions can also be carried forward to a year where you begin to earn income. Make sure to claim these each year to build up balances that you can deduct after you start residency or practice.

The transition from student to resident means you are earning employment income that allows for a few more deductions that were not previously available. Some examples are parking, travel to or from separate hospitals and cell phone expenses. To include these deductions, you need a signed T2200 Declaration of Conditions of Employment form. This can be requested from your employer annually.

Some hospitals allow for other employment expenses to be deducted. To be sure your expense claims are allowed, review the T2200 form each year as your employer includes the allowable items on the form directly. Your employer could add or remove expenses, so check the form each year.

If you move to start a new position, you may be able to claim your moving expenses. This is discussed in greater detail in Part 2 of this series.

The above is a list of common deductions that may apply and is not an exhaustive list of all deductions available. Our accountants can work with you to maximize your return and reduce your stress.

Did you know that MNP offers free personal tax returns for medical students and residents? To see if you qualify for the program, or for more information on how MNP can help you with your taxes, please contact Melanie Langevin, CPA, CMA at 613-691-4226 or [email protected]​.

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