What type of tax return are physicians required to file?
This will depend on whether or not you have incorporated your practice. If you incorporate, you will file a T2 Corporation Income Tax Return and a T1 Income Tax and Benefit Return. If you are a sole proprietor, you will be taxed as such and only required to file the T1 Income Tax and Benefit Return. Additionally, If you are part of a partnership, you would need to file a T5013 Partnership Return.
How can I keep track of my receipts and expenses?
Managing and growing your practice is a complex process, and maintaining records and receipts for tax filing purposes (although essential), is a tedious, time consuming task that takes away from allowing you to focus on growth. Keeping track of receipts is next to impossible, so as part of our Save, Seal and Send program, MedTax will send you a personalized envelope to store your receipts, and then send back to us for a review of your current tax return, before filing, completely free of charge.
How much of my income is taxable vs non-taxable?
Other than contributions to your 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.
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 a financial advisor 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 financial advisors will ensure that you are considered for every possible benefit. In addition to incorporation, some common strategies include RRSPs, TFSAs, life insurance, and estate planning.
