Tax resources
This handy guide will help you keep track of the tax slips and documents you may receive from MD Financial Management (MD) from January to early April annually and answer any questions you may have about them.
At MD, we want the completion of your annual tax return to be as simple and stress-free as possible.
Use this checklist to help you organize everything you need to file your annual tax return with the Canada Revenue Agency and Revenu Québec, as well as with the Internal Revenue Service, if necessary. Please consult a tax advisor for specific guidance relevant to your personal situation. During tax season you will also receive financial statements from MD. These statements are for your information only and are not required for filing your tax return.
MD client tax guide
Tax slips and mailing dates
| Target mailing / emailing date* | Tax slip |
What it reports Please note: You will receive only those tax slips that are applicable to your individual financial situation |
|---|---|---|
| Late January | RRSP contributions tax slip | Value of cash or securities contributed to your RRSP from March 2 through December 31, 2023. |
| Mid-March | RRSP contributions tax slip (first 60 days of the year) | Value of cash or securities contributed to your RRSP during the first 60 days of the year (January and February contributions made up to and including the contribution deadline of February 29, 2024). |
| Late January to early February |
1099-INT, 1099-DIV, 1099-B |
All interest, dividends or dispositions paid to a U.S. person or someone subject to U.S. tax laws. |
| Mid-February to late February |
T4RSP Relevé 2 (Quebec) NR4 (non-residents) |
RRSP withdrawals and any income tax withheld. Withholding tax does not apply to withdrawals for the purpose of the Home Buyers’ Plan or Lifelong Learning Plan.
Quebec residents receive a T4RSP and a Relevé 2; non-residents of Canada receive an NR4. |
| Mid-February to late February |
T4RIF Relevé 2 (Quebec) NR4 (non-residents) |
Total payments received for the year and any income tax withheld from a registered retirement income fund (RRIF), locked-in retirement income fund (LRIF) or life income fund (LIF). RRIFs, LRIFs and LIFs have annual minimum income payment requirements. MD must withhold tax on any amount that exceeds this minimum.
LRIFs and LIFs are governed by federal and provincial/territorial pension legislation, which limits the maximum annual withdrawal amount. Quebec residents receive a T4RIF and Relevé 2; non-residents of Canada receive an NR4. |
| Mid-February to late February |
T4A Relevé 1 (Quebec) NR4 (non-residents) |
Registered education savings plan (RESP) withdrawals and any income tax withheld (where applicable).
Quebec residents receive a T4A and Relevé 1; non-residents of Canada receive an NR4. |
| Mid-February to late February | T1135 reporting | Reports foreign investment property of more than $100,000 that is owned within the year. Form T1135 Foreign Income Verification Statement should be filed with the CRA by individuals who are Canadian residents, as well as corporations, trusts and some partnerships. |
| Late February to early March | Statement of Security Dispositions (Consolidated T5008/ RL-18) | Proceeds of disposition, adjusted cost base and any applicable gain or loss from all mutual fund redemptions, security sells and transfers. Provides each transaction separately, with totals at the bottom. |
| Late February to late March |
T3 Relevé 16 (Quebec) NR4 (non-residents) |
Income distributions, separated by category (capital gains, Canadian dividends, foreign income, other income and return of capital), and your share of foreign taxes paid that are eligible for the foreign tax credit. To be mailed mid-March.
Distributions from unit trusts are reported on separate T3 tax slips, when applicable. To be mailed late March. T3 slips for the MD Family of Funds will be consolidated in one package and include an attached breakdown. To be mailed late February. T3 tax slips for non-MD funds held in your MD account will be sent separately from third-party companies. Quebec residents receive a T3 and a Relevé 16; non-residents of Canada receive an NR4. |
| Late February to early March |
T5 Relevé 3 (Quebec) NR4 (non-residents) |
Both eligible and non-eligible dividends; interest income from guaranteed investment certificates (GICs), bonds or debentures; and interest earned on cash held within your account. An investment income summary is included with the T5.
Separate T5 and Relevé 3 slips are issued to clients holding split corporation securities. Quebec residents receive a T5 and a Relevé 3; non-residents of Canada receive an NR4. |
| Late March |
T5013 Relevé 15 (Quebec) |
Income from investments in a Canadian limited partnership at the partnership’s year-end.
Quebec residents receive a T5013 and a Relevé 15; non-residents receive a T5013 and an NR4. |
| Late March | T5006 |
Investments in a labour-sponsored venture capital fund.
These tax slips will be mailed by the labour-sponsored venture capital fund, not MD. |
| Late March | MD Family Trust tax returns | Income earned by an MD Family Trust, as well as any income allocated or designated to the beneficiary of the trust. If the trust tax return includes a T3 tax slip (or Relevé 16) in the name of the trust beneficiary, the trustee is responsible for distributing the slip to that person. MD files a separate copy of the trust tax return with the CRA (and Revenu Québec for Quebec MD Family Trusts). |
| Mid-April | 1042-S |
If you are a non-U.S. citizen residing in Canada, you may receive an Internal Revenue Service (IRS) Form 1042-S. This is an information return reporting U.S.-sourced income paid to foreign individuals and entities.
Businesses that handle the transaction are required to send the form to non-residents and the IRS for every payment made. If you do not file a return to the IRS, this form is for information purposes only. If you do file a return to the IRS, this form is required for total income and tax paid. |
* The target mailing/emailing dates provided are estimates only. Clients who have opted to receive electronic statements only will receive all tax documents online, except for MD and MD Private Investment Counsel estate tax slips, which are available only in paper format and will be sent by mail.
Frequently asked questions
Unfortunately, this is not possible. MD Financial Management is required by federal regulations to mail most tax slips or make them available electronically by the end of February. However, information for investments in income trusts and publicly traded limited partnerships is not reported to MD until the end of February. Once that information is received, MD processes it and issues tax slips to clients as soon as possible. The ones issued separately include the following:
- tax slips for registered plan income
- slips for registered retirement savings plan (RRSP) contributions made between March 2 and December 31, 2023
- slips for RRSP contributions made during the first 60 days of 2024
- mutual fund tax slips, issued directly by the mutual fund company whose funds you held during the 2023 calendar year
- unit trust slips and limited partnership unit slips
- non-resident slips
- any MD PlatinumTM product tax slips (T3 and T5013)
T3 tax slips from the MD Family of Funds, prepared in February, represent income from all applicable MD mutual funds. Unit trust information (representing 2023 tax year distributions) is not available until March, so it is sent as a separate tax slip. Interest income in nonregistered accounts — including interest on investments in guaranteed term deposits and equity income — is reported on a T5 tax slip from MD.
Often, only a portion of a unit trust’s monthly distribution is taxable. The remaining amount generally represents a return of capital, which is typically not taxable at the time of distribution; however, your adjusted cost base in the units of the fund is reduced by the amount of this return of capital. Upon a future sale of some or all of the units, this will result in either an increased capital gain or a reduced capital loss.
Non-residents of Canada who earn income in nonregistered accounts or who make a withdrawal from a registered account receive an NR4 tax slip.
- Non-registered accounts: income earned is generally subject to Canadian non-resident withholding tax. The tax rate varies according to the type of income and a non-resident’s country of residence. This tax is withheld when income is earned in the account and is remitted to the Canada Revenue Agency.
- Registered accounts: certain withdrawals by a non-resident are also subject to Canadian nonresident withholding tax. This tax is withheld at the time of withdrawal and is remitted to the Canada Revenue Agency.
MD issues separate T3 and T5 tax slips, when applicable, for each MD mutual fund in non-registered accounts. A T5 tax slip is created when the MD Growth Investments Limited mutual fund makes a distribution.
If you own non-MD funds in your non-registered MD account, you will receive T3/Relevé 16 tax slips and other regulatory documentation directly from thirdparty fund companies.
This is often referred to as the “grossed-up” amount of dividends.
- For eligible dividends: the “taxable amount of eligible dividends” represents 138% of the fund’s actual eligible dividends received from Canadian public corporations and distributed to unitholders.
- For other dividends: the “taxable amount of dividends other than eligible dividends” represents 115% of the fund’s actual ineligible dividends received from Canadian public corporations and distributed to unitholders.
An offsetting federal dividend tax credit can be used on your personal T1 tax return to reduce your tax liability, equal to 15.0198% of eligible and 9.0301% of ineligible taxable amounts.
Most provinces apply a similar dividend tax credit, worth approximately one-half of the federal tax credit.
If you are a resident of Quebec, you will also receive a corresponding Relevé 16 slip that reports both eligible and ineligible Canadian actual and taxable dividend amounts.
Yes. The attribution rules may no longer be applicable to your situation, possibly due to divorce or the death of the contributor. If specific requirements are met, the spousal information can be removed from T4RSP or T4RIF tax slips. Contact your MD Advisor* or the MD Trade Centre at 1 800 267-2332 to make this change.
Dividends received from foreign corporations are not subject to the “gross-up,” nor are they eligible for the dividend tax credit. Instead, they are reported as “foreign non-business income” on your T3 tax slip.
No. The TFSA is a tax-free savings account and, generally, you would not receive any tax slips for investments in this account.
It can be any RRSP:
- to which the annuitant’s spouse or common-law partner contributed,
- that received payments or transfers of property from RRSPs to which the spouse or common-law partner contributed, or
- that received payments or transfers of property from registered retirement income funds (RRIFs) to which the annuitant transferred amounts from other spousal or common-law partner RRSPs.
MD Growth is MD’s only mutual fund corporation and is not treated the same way as a mutual fund trust. Income distributed from the fund is typically distributed as dividends to its unitholders and is reported on a T5 tax slip. MD Growth did not make a distribution in 2023.
When your spouse or common-law partner makes a withdrawal from a spousal or common-law partner RRSP to which you contributed, this withdrawal may be taxable to you. The taxable amount is the portion of the withdrawal that represents any spousal or common-law partner RRSP contributions you made in the year of the withdrawal or in either of the two preceding years.
This attribution rule does not apply if:
- you are living separately due to marriage breakdown,
- the spousal or common-law-partner RRSP has been converted to a RRIF and no more than the minimum RRIF payment or regular annuity payment is withdrawn,
- you and your spouse or common-law partner are non-residents of Canada, or
- your spouse or common-law partner makes withdrawals in the year of your death.
You will need to file a T1-ADJ form to amend your tax return. Find and download this form at www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1-adj.html.
To avoid having to amend your tax return, please do not file it until you are sure you have received all your tax slips.
Quebec residents must also complete and file a TP-1.R-V form with Revenu Québec. This form is available online at www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/tp-1-r-v.
T1135 Foreign Income Verification Statement Fact Sheet
More information about the T1135 Foreign Income Verification Statement, which must be completed if a taxpayer has held specified foreign property with a total cost exceeding C$100,000 during the year.
Filing a U.S. tax return
Information on Foreign Account Tax Compliance Act (FATCA) and U.S. Persons
MD Stable Income Fund Tax Information
This handy guide presents information about the MD Stable Income Fund, which is a segregated group annuity policy issued by MD Life Insurance Company.
T5013 Fact Sheet
This fact sheet provides more information about the T5013 tax slip, which reports income from investments in the MD Platinum Global Private Equity Pool Limited Partnership.
Whether you’re a medical student, resident, practicing physician or retiree, we have tax tips to help you get the most from your 2023 tax return—and plan for the 2024 tax year.
* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec), or an MD Private Investment Counsel Portfolio Manager.
MD Platinum™ is a trademark of The Bank of Nova Scotia, used under licence.
The information contained in this document is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals. Employees of the MD Group of Companies are not authorized to make any determination of a client's U.S. status or tax filing obligations, whether foreign or domestic. The MD ExO® service provides financial products and guidance to clients, delivered through the MD Group of Companies (MD Financial Management Inc., MD Management Limited, MD Private Trust Company and MD Life Insurance Company). For a detailed list of these companies, visit md.ca. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies and Scotia Wealth Insurance Services Inc.