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Education Tax Credits


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Hi all, incoming PGY-1 on July 1 2016.

 

Just a question re: education tax credits. I think I remember reading something here a little while ago, that instead of getting one lump sum after doing your taxes, you can just have it so they don't deduct the taxes in the first place from your pay check. I was wondering if this is still true? I'm having trouble finding where I read it. if so how I can go about doing this? I would rather this then get one lump sum at the end of the year.

 

Thanks!

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Hi all, incoming PGY-1 on July 1 2016.

 

Just a question re: education tax credits. I think I remember reading something here a little while ago, that instead of getting one lump sum after doing your taxes, you can just have it so they don't deduct the taxes in the first place from your pay check. I was wondering if this is still true? I'm having trouble finding where I read it. if so how I can go about doing this? I would rather this then get one lump sum at the end of the year.

 

Thanks!

 

you can do that - you have to fill out in advance the correct paperwork

quick search - this is the one you want I think:  http://www.cra-arc.gc.ca/E/pbg/tf/t1213/t1213-15e.pdf

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None, they just take your word for it.

 

usually :) I did have to actually get some paperwork for the school here to agree to it though (seemed odd but ok). Regardless it was quite quick etc.

 

Never a fan of giving money to a government interest free for a year just so they can give it back to me, if you have the discipline to use it correctly etc.

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Oh, interesting.  I never got asked for any, I don't think.  Though, the start of residency was such a whirlwind that maybe I did and forgot.

 

90% sure I didn't though.

 

some do, some don't :) It isn't hard in any case - I just printed off the canada revenue page that showed the credits I had.

 

used up the last of those credits this year (pgy3). From this point on I am "on my own", ha.

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Nice - I was wondering how long mine would last - I'm calculating about the same as you.

 

Also holy shit, you're a PGY3 these days?

 

side note  - the main issue with people taking the tax credit is the reduction in income they will get around pgy3 - you get pay raises every year but the tax return is worth more than that so you will see a drop - that can hurt. One of the most important concepts in personal finance is that it is very difficult to reduce ones standard of living so it is better not to have it rise in the first place (i.e. save pay raises, don't spend them). Boring I know but it was the most important key in my personal finances to date - and I plan to repeat that when I become staff. When I have some serious cash in the bank I will let my income rise - and still it will fell like a king to be spending 50% more than I am as a resident. It will also feel amazing to have yearly 10% salary increases ha. Simple but very important stuff - many successful financially speaking staff have told me the same thing (the kind that buy outright their homes a few years out, and chuckle at the idea of mortgages).

 

and yeah pgy-3 - past the 1/2 way mark by the numbers at least. That final exam is starting to loom ahead!

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Hi Everyone,

 

I am an incoming PGY 1 at U of T. I called the PGME office to ask about this and was told to just fill in my accrued tuition tax credits on the TD1. Has anyone why is a resident at U of T gone about it this way? Should this be okay provided I resubmit the form once my credits have been used up?

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Hi Everyone,

 

I am an incoming PGY 1 at U of T. I called the PGME office to ask about this and was told to just fill in my accrued tuition tax credits on the TD1. Has anyone why is a resident at U of T gone about it this way? Should this be okay provided I resubmit the form once my credits have been used up?

 

that is another way to do it - you put the credits in section 5.

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Anyone able to get a T2200 from their PGME?  If so, what type of deductions do you qualify for.

 

We got an email from our university accountant stating:

 

"Dear residents,

 

As a follow up to my February 25, 2016 email, I am continuing to advise units not to sign the T2200 form for medical residents. Given the lack of clarity on eligible expenses, the university is requesting a ruling from CRA to inform next steps.  It will take 90 days or longer before we receive a written reply from CRA, but we will keep you informed as more information is available."

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I claimed CPSO and CMPA fees, but nothing else that's listed on my T2200 (it also lists cell phone expenses, automobile and parking expenses).  I don't have a car.  Cell phone expenses are supposedly also deductible but I read up on it and it looks like it's only the portion of the bill that corresponds to what you used for work-related calls, so I just didn't claim any of it, because it would be extremely minimal.

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