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Filling out a TD1 Form

A TD1 form tells the employer how much tax needs to be taken off of an employee’s pay. There is one for federal tax and another for provincial. The higher your exemption, the less amount of tax is taken from your cheque. Employees should be filling out new TD1 forms in January of each year as circumstances can change and the basic exemption amount changes each year.


Section 1:


Employee information – This is where your T4 will be sent, so make sure this is correct.


Section 2: 


This starts with a basic personal amount, for 2019 the Federal amount is $12,069. Basically, this means that if you make less than this annually, you do not pay any taxes.
Below the basic personal amount are additional items that if they relate to you, increase your basic exemption (which means you have less tax deducted from your cheque). Keep in mind that if you fill out this form with higher amounts than you should, when you file your income taxes you could owe, so be honest and make sure it is correct.


The following are areas where errors are made most often:


  • Tuition: Are you paying more than $100.00 for tuition in the current year? If yes, enter the total tuition fees you will pay here. 
  • Spouse or common-law partner amount: If you are supporting your spouse/common-law partner, they reside with you and their income will be less than $12,069, enter the difference between this amount and the spouses estimated net income. If their income will be more than $12,069 you cannot claim anything here.
  • Amount for eligible dependant: If you are a single parent, child (under 18) resides with you and their income will be less than $12,069, enter the difference between this amount and the child’s estimated net income. If their income will be more than $12,069 you cannot claim anything here. 


Section 3 (back page):


Do you work for more than one employer?

If yes, you can only claim the amounts on the front page on one of them. Choose the employer that you will have the higher income and use your exemptions there. If you are filling out this form for the employer that you have a lower income, you will check this box and record a zero on the total credits claimed line on the front page.


For the employer with the zero at the bottom of the page, you will be paying higher tax amounts than the employer that you could use the exemptions for.


Will your net income be less than your total amount on the front page?


If yes, check this box and no taxes will be deducted from your earnings. 


Do you want additional tax deducted?


If yes, write the additional amount you want to pay in the space provided, this amount will be taken off on EACH cheque.

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