Tax Preparation for Healthcare Professionals

Tax preparation with Elena Arsen, CPA, CMA · Arsen Accounting Services

Start with your work arrangement

Tell us whether you receive employment income, operate a sole proprietorship, work in a partnership or earn income through a corporation. Someone working at more than one clinic may have several arrangements in the same year. An unincorporated practice generally reports its business or professional results with the personal T1 using T2125 where applicable; an incorporated practice has a separate T2 return. We confirm which filings belong in the engagement.

Explain clinic payments and fee sharing

Provide payment summaries from each clinic or platform alongside your own income records. Identify clinic rent, administrative charges, practitioner splits, refunds and payment-processing fees separately. Explain whether a statement shows the total billed or the amount transferred after deductions. Keep notes about differences between statements and deposits so preparation starts with a clear picture of the practice’s income.

Organize practice expenses and equipment

Gather receipts for professional registration, liability insurance, room rental, supplies, software and other practice costs. Separate equipment purchases from recurring expenses, and identify any personal use. Keep relevant home-office and travel records when those costs are part of your inquiry. These are categories to review, not automatic deductions; the treatment depends on your circumstances and the applicable tax rules.

Review GST/HST by the service provided

Working in healthcare does not make every source of revenue GST/HST exempt. The practitioner’s qualifications, the nature and purpose of a service, and the applicable exemption matter. CRA guidance describes conditions for psychotherapy and counselling therapy exemptions. If your practice also sells products or provides other services, identify those amounts separately. We review the facts and agree on any GST/HST filing work before proceeding.

Share financial records without patient files

Begin with a brief description of your practice, tax years and filing needs. Do not include patient names, clinical notes or treatment records in an initial inquiry. Financial summaries should contain the information needed for the tax work without unnecessary health information. We will confirm an appropriate document-sharing method and any additional financial records required.