TD1 & T1213

Two forms let individuals adjust how much tax is withheld from their pay during the year, which helps avoid a large balance owing or an unnecessarily large refund.

TD1, PERSONAL TAX CREDITS RETURN

• Completed for each employer or payer: a federal TD1 and a provincial TD1 (for example TD1ON).

• Tells the payer which credits to factor into withholding, such as the basic personal amount, age, pension, disability, tuition, and spouse or dependant amounts.

• A person with more than one employer should claim credits only with one, and tick the box to say they have more than one employer, to avoid under-withholding.

• Can request extra tax to be deducted from each pay.

• If not completed, the payer uses only the basic personal amount.

T1213, REQUEST TO REDUCE TAX DEDUCTIONS AT SOURCE

• Submitted to the CRA to request permission for the employer to withhold less tax, because of deductions the employer does not know about.

• Common reasons: regular RRSP contributions, child care expenses, support payments, employment expenses, large charitable donations, rental losses, and carrying charges.

• The CRA reviews supporting documents and issues a letter of authority to the employer.

• Must be submitted each year.

• T1213(OAS) is a version for reducing the OAS recovery tax withheld from OAS payments.