The University of British Columbia has recently confirmed that they will be reissuing T2202A forms to students who were registered as medical residents from 2005 forward allowing the doctor to claim tax credits for education and textbook allowances.
The reason for this change arose because of a recent Tax Court of Canada decision stating that medical residents should be characterized as both full-time students and full-time employees. Full-time students qualify for education tax credits ($400/mo. Federally and $200/mo. in BC) and textbook credits ($65/mo. Federally). When the CRA was asked if this would change their long-time administrative policy they confirmed that they will follow the courts' decision.
Individuals who obtain the amended T2202A and can apply for tax credits that may be allowed at the CRA's discretion. For the 2005 taxation year the request must be completed by December 31, 2015. If not then, then any 2005 credits will be lost as they will be outside the 10 year time frame.
So what is this credit worth? Well, if you were a deemed to be a full time student for 10 months a year, over a five year residency, then that works out to $23,350 in available federal credits and $10,000 of provincial credits, or approximately a $5,000 tax savings.
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