What type of tax return are physicians required to file?
That depends on whether you’ve incorporated your practice.
- Incorporated physicians must file a T2 Corporate Income Tax Return and a T4/T4A for any salary or dividends paid to themselves.
- Unincorporated physicians (sole proprietors) file a T1 Income Tax and Benefit Return, which includes reporting all business and professional income.
- If you operate as part of a partnership, a T5013 Partnership Return may also be required.
How can I keep track of my receipts and expenses?
Managing and growing your medical practice is complex — and keeping track of receipts, invoices, and expense records for tax purposes can be time-consuming.
That’s where MedTax’s custom app, Pacioli.ca, comes in. By securely linking your bank account, Paccioli helps automate your cash flow tracking for both tax planning and long-term projections. You’ll also receive year-end summaries and categorized reports prepared by our team — all included at no extra charge.
How much of my income is taxable vs non-taxable?
Other than income earned from a TFSA, all income is generally taxable. However, there are income tax benefits that exempt you from tax on certain things such as life insurance or capital gains on a principal residence and RRSP contributions.
Is incorporation right for me?
Incorporation depends on many personal factors and should be considered on a case-by-case basis. If you are thinking about incorporating your practice, we advise you to contact one of our tax advisors to help you with this decision. As a general rule of thumb, incorporation is favourable if the advantages are greater than costs associated with the incorporation process.
What are some ways I can improve my tax return?
There are many ways to decrease your taxable income. Our tax advisors will ensure that you are considered for every possible benefit. In addition to incorporation, some common strategies include RRSPs, TFSAs, and life insurance.
