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Claiming LMCC exams on tax returns in later years?


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I was wondering if it is possible to claim the cost of the LMCC part 1/2 retroactively (eg took it in 2017, claim it on 2018 tax return that you are filing in 2019)

The reason I ask is because my understanding is that tuition tax credits get applied before any other tax credits you record (medical, travel expenses, etc), and since I and most people have enough tuition tax credits from medical school to cover everything, claiming anything else during those years that we have those tuition tax credits covering everything makes claiming these exams and things a waste. Just want to confirm this is the case. Thanks

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13 minutes ago, JohnGrisham said:

Are you sure one can even claim the lmcc costs?

It appears so!

"Licensing examination fees

Examination fees paid to an educational institution, professional association, provincial ministry or other similar institution, to take an occupational, trade or professional examination that is required to obtain a professional status recognized by federal or provincial statute, or to be licensed or certified as a tradesperson, to allow you to practice the profession or trade in Canada, may be eligible for the tuition tax credit. You should be provided with a receipt to substantiate your eligible exam fees. To view the information that should be contained in the receipt go to example of a receipt for licensing examination fee."

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3 hours ago, LJ1000F said:

I was wondering if it is possible to claim the cost of the LMCC part 1/2 retroactively (eg took it in 2017, claim it on 2018 tax return that you are filing in 2019)

The reason I ask is because my understanding is that tuition tax credits get applied before any other tax credits you record (medical, travel expenses, etc), and since I and most people have enough tuition tax credits from medical school to cover everything, claiming anything else during those years that we have those tuition tax credits covering everything makes claiming these exams and things a waste. Just want to confirm this is the case. Thanks

If you took the exam in '17, the fees that were paid in connection with that exam should be included in the FY17 return.

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15 minutes ago, la marzocco said:

If you took the exam in '17, the fees that were paid in connection with that exam should be included in the FY17 return.

I think that is right - and that would allow you to move forward the tax credits from tuition until later. The end effect is exactly the same. 

You get to claim that and your college exam fees as well. 

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12 hours ago, rmorelan said:

I think that is right - and that would allow you to move forward the tax credits from tuition until later. The end effect is exactly the same. 

You get to claim that and your college exam fees as well. 

From my understanding, claiming any other tax credits is basically not useful when you still have tuition tax credits because the CRA always apply the tuition tax credits first before anything else and none of the other tax credits (ie these exam credits) get carried forward.

Can someone confirm claiming all these other tax credits when you still have tuition tax credits that they (NON tuition tax credits) actually still get used?

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1 hour ago, LJ1000F said:

From my understanding, claiming any other tax credits is basically not useful when you still have tuition tax credits because the CRA always apply the tuition tax credits first before anything else and none of the other tax credits (ie these exam credits) get carried forward. The licensing examination fees are considered eligible tuition fees in the eyes of the CRA so these are not 'other tax credits.' These fees, along with your tuition that you pay to the university, are pooled into the carrying forward continuity where you can use and add through the years until the pool is fully depleted (i.e., in PY2/PGY3 normally).

Can someone confirm claiming all these other tax credits when you still have tuition tax credits that they (NON tuition tax credits) actually still get used? You're correct that tuition credits are used first, but I say that loosely. If you have expiring donation credits (e.g., you forgot to opt out of ancillary fees where you pay into a faculty's endowment [this is considered a donation] and you get a donation receipt... you can only carry forward donations for 5 years. In the case where you have expiring donation credits and available tuition credits, those expiring donation credits would be used first. Tuition credits can be carried forward indefinitely with no time constraint - until you earn enough income to drawn down on the entire balance. I cite this example because I have seen this in professional practice and some have forgone precious donation credits because of poor ordering.

Response in red.

Side note: There have been historical jurisprudence in this area for licensing fees for the Royal College or CFPC. These particular licensing fees for the College/CFPC are sometimes viewed as capital expenditures that are required to be outlaid for your professional medical corporation to run. The tax treatment for those fees are different because they are now under corporate tax laws and not personal tax laws.

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10 hours ago, LJ1000F said:

From my understanding, claiming any other tax credits is basically not useful when you still have tuition tax credits because the CRA always apply the tuition tax credits first before anything else and none of the other tax credits (ie these exam credits) get carried forward.

Can someone confirm claiming all these other tax credits when you still have tuition tax credits that they (NON tuition tax credits) actually still get used?

I think that if no one replies you on this forum, definitely use a professional tax accoutant. MD financials have accountants for medical residents that do you tax return for free!

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14 hours ago, LJ1000F said:

From my understanding, claiming any other tax credits is basically not useful when you still have tuition tax credits because the CRA always apply the tuition tax credits first before anything else and none of the other tax credits (ie these exam credits) get carried forward.

Can someone confirm claiming all these other tax credits when you still have tuition tax credits that they (NON tuition tax credits) actually still get used?

.....well as someone pointed out checking with an accountant isn't a bad idea. I will say that I did use both my LMCC part 1 and 2 over two returns without issue and they did count, with tuition credits remaining in both cases.

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13 hours ago, la marzocco said:

Response in red.

Side note: There have been historical jurisprudence in this area for licensing fees for the Royal College or CFPC. These particular licensing fees for the College/CFPC are sometimes viewed as capital expenditures that are required to be outlaid for your professional medical corporation to run. The tax treatment for those fees are different because they are now under corporate tax laws and not personal tax laws.

Thank you, and everyone. Makes sense

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