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My employer wants me to complete Forms TD1 and TD1ON !

The TD-1 and the TD1-ON are forms that you must complete when you start a new job or periodically during your employment when your situation changes or tax situation change.

95% of all individuals will only claim Line 1 – their basic personal exemption on both forms.  After you enter your personal information at the top, simply enter the total of Line 1 onto line 13 on the TD1 and sign it.  After you enter your personal information at the top, simply enter the total of Line 1 onto line 10 on the TD1-ON and sign it.

You are done !

If you are part of the other 10% that will claim more than your basic personal exemption which means:

  • you are a single parent with primary custody of your child
  • you support a non-working spouse
  • you support a non-working disabled spouse or child who qualifies for the disability tax credit
  • you qualify for the disability tax credit yourself
  • you are in school
  • you have a child in school who will transfer their tuition to you
  • you have a grandparent, parent living with you who is 65 or older
  • you have a relative living with you who is disabled.

If any of these apply to you, than enter the amount from that line number on the line provided.

When you add up your exemption, it will include your basic personal exemption and any of the line items above that apply to you.

This means that your employer will take a lot less taxes for you during the year.

Just remember that if you chose to enter any of the above amounts other than your Basic Personal Exemption, it means you will get a very small refund or no refund at all.

For example, if you don’t claim the exemption for being a single parent on your TD-1 and TD1-ON, your refund could be in excess of $3,000. If you claim the exemption, your refund might be $280.  However, your pay would have been $250 extra each month because you claimed the exemption.

You can find out more information by visiting the CRA website on how to complete the TD-1

 

 

 

Posted in: GENERAL INFORMATION ABOUT REVENUE CANADA