Pharma Tax

👶 Are you paying someone to look after your children so you can work?

Between long shifts, running a practice, evenings at the clinic, and everything else that comes with being a healthcare professional, childcare can become a significant family expense.

Many healthcare professionals also work late or operate practices that stay open well beyond traditional working hours. When your workday doesn’t end when school or daycare does, finding reliable childcare isn’t always optional. It can be a necessary and significant cost just to allow you to keep working and earning your income.

But don't forget about the potential tax deduction.

If you pay eligible childcare expenses so you can work, carry on a business, attend school, or conduct qualifying research, you may be able to deduct some of those costs on your personal tax return.

How much could you claim?
Annual limits per child can be as high as:
✔ Under 7 years old: Up to $8,000 per child
✔ Aged 7 to 15 (or over 16 with an impairment): Up to $5,000 per child
✔ Qualifies for the Disability Tax Credit (any age): Up to $11,000 per child

And more expenses may qualify than you think.
Depending on your circumstances, eligible expenses can include things like:
✔ Daycare and child-care centres
✔ Babysitters and caregivers
✔ Before and after school programs like PLASP
✔ Day camps and certain summer camps
✔ Some boarding school or overnight camp costs, subject to specific limits
✔ The eligible child-care portion of private school costs

There are rules around which expenses qualify, how much can be claimed, and which parent claims the deduction. In many two-parent households, the lower-income spouse or common-law partner generally has to make the claim, although there are exceptions.

And remember: keep your receipts.

Your childcare provider should provide the information needed to support the expense, and you'll want those records available when it's time to prepare your return.

If you're already paying for childcare so you can earn your income, make sure you're not overlooking a deduction you may be entitled to.

👉 Follow us for weekly tax tips designed specifically for pharmacists, dentists, and physicians.

🏔️ RX Dental is headed to Banff!

I'm excited to announce that I will be attending the Pharmacy Brands Canada Spotlight 2026, happening September 11–13 in Banff, Alberta!

We’ll have our booth set up throughout the conference and are looking forward to connecting with pharmacy owners, catching up with familiar faces, and meeting some new ones.

If you’re attending, make sure to stop by the RX Dental booth and say hello! 👋

Come chat with us about how we help pharmacists pay less tax, grow their pharmacy, build their wealth, and plan their exit.

We hope to see you there!

📍 Banff, Alberta
📅 September 11–13

Does your accountant just do your taxes, or are they actually helping you pay less tax?

For many healthcare professionals, tax season looks the same every year.

Their accountant prepares the returns, tells them what they owe, and that's where the conversation ends.

But filing your taxes and planning your taxes are two very different things.

For one client, we developed a specialized tax plan covering 8 key areas, including industry-specific opportunities, compensation strategies, and other planning opportunities specific to their situation.

We won't give away the whole prescription, but the result speaks for itself:
💰 $10,410 in annual tax savings.

Your accountant shouldn't just tell you how much tax you owe. They should be helping you find opportunities to pay less.

Want to know what opportunities you might be missing?
Book a free consultation at rxdental.ca/start

Thinking about making a big investment in your practice, but not sure if you can actually afford it?

Maybe you're considering hiring another associate.
Renovating the practice.
Buying new equipment.
Purchasing the building.
Or acquiring another location.

Your bank account might look healthy today, but there's a big difference between having the money to do something and being able to comfortably afford everything that comes afterward.

What happens to your cash flow?
What if revenue doesn't grow as quickly as expected?
What happens when loan payments, payroll and other expenses are added?
How much cash should you keep available?
And how does the decision affect your taxes and personal financial goals?

Too many practice owners make major decisions based on what they can afford today, without understanding what those decisions could mean 6, 12 or 24 months from now.

That's where forecasting matters.

Before making a major financial commitment, you should be able to see the potential impact on your business and make the decision with confidence.

Our team of specialists are equipped to provide pharmacists, dentists and physicians across Canada with proactive business planning, advice and forecasting, so that we can help you every step of the way.

If you're considering a big move for your practice, book a free consultation at rxdental.ca/start.

🎓 Did you graduate with unused tuition tax credits that you've completely forgotten about?

After years of university, dental school, medical school, pharmacy school, residency, or other post-secondary education, there's one number worth checking before assuming your tax bill is what it is:
Your unused tuition amount.

If you didn't earn enough income while you were in school to use all of your eligible federal tuition tax credits, the unused amount may have been carried forward.

And once you're earning enough income and paying federal tax, those carried-forward amounts can help reduce the federal tax you owe.

The good news?
You don't have to dig through a box of university paperwork to find out whether you still have some available.

You can check your CRA My Account or your latest Notice of Assessment to see your unused tuition amounts carried forward from previous years.

One important thing to remember: carried-forward tuition amounts generally have to be used once you have enough federal tax payable to claim them.

They aren't something you can simply choose to save indefinitely for a year when your income is higher.

If you're a newer pharmacist, dentist, or physician, make sure your accountant knows about any unused tuition amounts on your CRA account.

After spending years and thousands of dollars getting your education, don't overlook a tax credit you've already earned.

👉 Follow us for weekly tax tips designed specifically for pharmacists, dentists, and physicians.

Have you thought about what happens to your corporation if something happens to you?

For many incorporated healthcare professionals, estate planning is something that gets pushed aside while they focus on their practice, patients, and family.

But having only one will may not always be the most effective way to handle both your personal assets and the shares of your corporation.

For one of our clients, we worked with their legal team to put the right estate planning structure in place, including a personal will and a secondary will.

The goal was simple: properly plan for both their personal assets and their corporation, while creating a more tax-efficient transition for their estate.

The result?
💰 $4,410 in potential tax savings

It's another example of why financial planning isn't just about what you earn today. It's also about making sure what you've built is structured properly for the future.

If you're incorporated and haven't reviewed how your corporation fits into your estate plan, it may be worth taking a closer look.

Book a call at rxdental.ca/start

Your practice is profitable. But is it profitable enough?

It's a question most practice owners can't answer.

You might look at your financial statements, see a profit, and hear your accountant say:
"Looks like you had a good year."

But compared to what?
Could your gross margin be higher?
Are your staffing costs reasonable?
Are certain expenses eating into your profit?
Is your practice actually performing as well as other practices of a similar size?

Without something to compare your numbers against, it's difficult to know where you're doing well and where there may be room to improve.

That's one of the advantages of working with an accountant who specializes in your industry.

At RX Dental, we don't just look at whether your practice made money.

We benchmark your performance against similar-sized practices in your industry to help identify where your numbers are strong and where there may be opportunities to improve profitability.

Because your financial statements shouldn't just tell you what happened last year.
They should help you figure out what to do next.

Want to know how your practice compares?

Book a free consultation at rxdental.ca/start.