At a Glance
The tax filing season is here with us and it’s important to understand tax deductions and credits and how they impact your income taxes.
BC doctors, like other practitioners including accountants and engineers, are eligible for certain deductions and credits to help reduce their income taxes.
Tax deductions and credits for medical professionals in BC include education and tuition credit, moving costs, professional fees (College of Physicians and Surgeons), training credit, automobile costs, office and medical supplies, salaries and wages, work meals and entertainment (only 50% are claimable), and so on.
Do medical practitioners benefit from tax deductions and credits?
Medical residents generate decent amounts of income that can result in high taxes. This is why understanding the concept of tax deductions is vital towards minimizing your income taxes.
Expenses that can be claimed help medics to reduce their taxable incomes (income that is taxed) and ultimately the amount of tax to be paid to the CRA. Similarly, tax credits are directly credited against your taxes thus reducing the amount of tax owed.