Fillable Form TD1

What is the TD1 Form?

The TD1 form, also known as the Personal Tax Credits Return, is a crucial document for employees in Canada as it helps determine the amount of federal and provincial/territorial taxes to be withheld from their salary or wages. It is also used to claim tax credits and deductions which in turn impacts an employee's take-home pay and overall tax liability.

Before starting employment or in the case of any changes, employees must complete the TD1 form and submit it to their employer. The TD1 form requires information such as the employee's name, address, and social insurance number. Additionally, it asks for information about the employee's marital status, number of dependents, and any other sources of income. The form also includes a section for claiming tax credits, such as medical expenses and charitable donations, which can be used to reduce the employee's overall tax liability.

How do I fill out the TD1 Form?

Before beginning to fill out this form, make sure to read through page 2 of the TD1 form and note all of the conditions for filling out the form. You may skip forward to the Page 2 section of this guide for more details.

The form itself will also require you to do some calculations in order to properly determine how much in federal and provincial/territorial taxes will be withheld, or how many tax credits and deductions can be claimed. Make sure to have the relevant documents prepared to make filling out the form easier and simpler.

Step 1: Name

Enter your full legal name.

Step 2: Date of birth

Enter your birthdate.

Step 3: Employee Number

Enter your employee number.

Step 4: Address and Postal Code

Enter your primary address information and postal code.

Step 5: Country of Permanent Residence (For non-residents only)

Enter the country in which your permanent residence is located. If this section is not applicable, enter N/A instead.

Step 6: Social Insurance Number

Enter your social insurance number.

Line 1: Basic Personal Amount

Generally speaking, all residents of Canada may enter a basic personal amount of $14,398. However, in the case of your net income from all sources being greater than $155,625, you may enter a partial claim by filling out the appropriate section of Form TD1-WS, Worksheet for the 2022 Personal Tax Credits Return, and enter the calculated amount in the space provided.

Line 2: Canada Caregiver Amount for Infirm Children Under Age 18

Either parent (but not both) may claim $2,350 per infirm (physically or mentally unwell) child born in 2005 or later that resides with both parents throughout the year. If the child does not reside with both parents throughout the year, the parent who is entitled to claim the amount for an eligible dependent on Line 8 may claim the Canada caregiver amount for that same child who is under 18. Enter the total amount being claimed in the space provided.

Line 3: Age Amount

If you will be 65 or older on December 31, 2022, and your net income for the year from all sources totals to $39,826 or less, enter $7,898 in the space provided. If your net income this year will be between $39,826 and $92,480 and you wish to calculate a partial claim, fill in the appropriate section in Form TD1-WS.

Line 4: Pension Income Amount

If you receive regular payments from a pension plan or fund (excluding Canada Pension Plan, Quebec Pension Plan, Old Age Security, or Guaranteed Income Supplement payments), enter the lesser $2,000 or your estimated annual pension income in the space provided.

Line 5: Tuition (Full Time and Part Time)

If you are a student enrolled in university, college, or any educational institution certified by Employment and Social Development Canada, and you will pay more than $100 per institution in tuition fees, fill in this section. If you are enrolled full time or part time, enter the total amount of fees you will pay for tuition in the space provided.

Line 6: Disability Amount

Enter $8,870 if you will claim the disability amount on your income tax and benefit return using Form T2201, Disability Tax Credit Certificate.

Line 7: Spouse or Common-law Partner Amount

If you are supporting your spouse or common-law partner who lives with you and whose net income for the year will be less than the amount indicated on Line 1 (or Line 1 plus $2,350 if they are infirm), enter the difference between the amount on Line 1 and their estimated net income for the year in the space provided. If their net income will be greater than or equal to the amount on Line 1, this amount cannot be claimed.

In all cases, if their net income for the year will be $25,195 or less and they are infirm, proceed to Line 9.

Line 8: Amount for an Eligible Dependant

If you do not have a spouse or common-law partner and you are supporting a dependent relative living with you whose net income for the year is less than the amount indicated on Line 1 (or Line 1 plus $2,350 if they are infirm and you cannot claim that Canada caregiver amount for children under age 18 for the dependent), enter the difference between the amount o nLine 1 and their estimated net income for the year in the space provided. If their net income will be greater than or equal to the amount on Line 1, this amount cannot be claimed.

In all cases, if their net income for the year will be $25,195 or less and they are infirm and are of age 18 or older, proceed to Line 9.

Line 9: Canada Caregiver Amount for Eligible Dependent or Spouse or Common-law partner

If you support an infirm, eligible dependent (aged 18 or older) or an infirm spouse or common-law partner whose net income for the year will be $25,195 or less, fill in the appropriate section in Form TD1-WS.

Line 10: Canada Caregiver Amount for Dependent(s) Age 18 or Older

If you support an infirm dependant age 18 or older (other than the spouse or common-law partner or eligible dependant you claimed an amount for on line 9 or could have claimed an amount for if their net income were under $17,499) whose net income for the year will be $18,783 or less, enter $7,999 in the space provided.

You may enter a partial amount if their net income for the year will be between $18,783 and $26,782. To calculate a partial amount, fill out the line 10 section of Form TD1-WS. You may claim this amount for more than one infirm dependent age 18 or older.

Line 11: Amounts Transferred from Your Spouse or Common-law Partner

If your spouse or common-law partner will not make use of all of their age amount, pension income amount, tuition amount, or disability amount on their income tax and benefit return, enter the total unused amount in the space provided.

Line 12: Amounts Transferred from a Dependent

If your dependent will not make use of all of their age amount, pension income amount, tuition amount, or disability amount on their income tax and benefit return, enter the total unused amount in the space provided.

Line 13: Total Claim Amount

Add Lines 1 through 12 and enter the sum in the space provided.

Page 2

Read through all of the items on this page carefully.

Filling out Form TD1

Fill out the TD1 form only if all of the following apply:

• you have a new employer or payer, and you will receive salary, wages, commissions, pensions, employment insurance benefits, or any other remuneration
• you want to change the amounts you previously claimed (for example, the number of your eligible dependants has changed)
• you want to claim the deduction for living in a prescribed zone
• you want to increase the amount of tax deducted at source

More than One Employer or Payer at the Same Time

If you have more than one employer or payer at the same time, and you have already claimed personal tax credits through another Form TD1, you CANNOT claim tax credits again.

If your total income from all sources will be more than the personal tax credits that you claimed on another TD1 form, check the box provided, enter “0” on Line 13, and do not fill in Lines 2 to 12.

Total Income is Less than the Total Claim Amount

If your total income for the year from all employers and payers will be less than your total claim amount on Line 13, check the box provided. Your employer or payer will not deduct tax from your earnings.

For Non-resident Only

If 90% or more of your world income as a non-resident will be included in determining your taxable income earned in Canada for the year, check “Yes” and proceed to fill out the previous page. Otherwise, check “No”, enter “0” on Line 13, and do not fill in Lines 2 to 12 as you are not entitled to claim personal tax credits.

Provincial or Territorial Tax Credits Return

You must fill out a provincial or territorial TD1 form if your claim amount on Line 13 is more than $15,000. Use the Form TD1 of your province or territory of employment if you are an employee. If you are a pensioner, use the Form TD1 for your province/territory of residence.

Deduction for Living in a Prescribed Zone

You may claim any of the following amounts if you live in the Northwest Territories, Nunavut, Yukon, or another prescribed northern zone for more than six months in a row beginning or ending in 2023:

• $11.00 for each day that you live in the prescribed northern zone
• $22.00 for each day that you live in the prescribed northern zone if, during that time, you live in a dwelling that you maintain, and you are the only person living in that dwelling who is claiming this deduction

Employees living in a prescribed intermediate zone may claim 50% of the total of the above amounts. Enter the total amount that will be claimed in the box provided.

Additional Tax to be Deducted

If you receive other income, such as non-employment income from Canada Pension Plan or Quebec Pension Plan or Old Age Security Pension, you may wish to have more tax deducted from each payment. Enter the additional tax amount you want to be deducted from each payment to choose this option in the box provided.

If you wish to change this deduction later, you may fill out a new Form TD1.

Reduction in Tax Deductions

You may request to have less tax deducted on your income tax and benefit return if you are eligible for deductions or non-refundable tax credits that are not listed on this form. To make such a request, fill out a Form T1213, Request to Reduce Tax Deductions at Source, to get a letter of authority from your tax services office. Give that letter of authority to your employer or payer.

If your employer or payer deducts Registered Retirement Savings Plan (RRSP) contributions from your salary, you do not need a letter of authority.

Forms and Publications

You may find other forms and publications released by the CRA by going to canada.ca/cra-forms-publications or calling 1-800-959-5525

Certification

Sign the form on the space provided, then enter the date that you signed the form.

Frequently Asked Questions (FAQs)

What are tax deductions?

A tax deduction is an amount that you can deduct from your taxable income to lower the amount of taxes that you owe.

Is it mandatory to contribute to the Canada Pension Plan (CPP)?

Yes. Contributions to the CPP are mandatory for all working Canadians aged 18-70.

Can I submit a TD1 form electronically?

Yes, so long as your employer accepts TD1 forms submitted through such means.

How does filling out a TD1 form help me?

A correctly completed TD1 form can result in a lower amount of tax being withheld from each paycheck, which in turn leads to a higher take-home pay.

Why do employers need the TD1 form?

Employers use the information provided on the TD1 form to determine the amount of tax to be withheld from each employee's paycheck.

Do employers need to keep copies of TD1 forms submitted to them?

Employers must keep a copy of each employee's TD1 form on file, and it is the employee's responsibility to inform the employer of any changes that may affect their tax liability.

How long must employers keep copies of TD1 forms on file?

The CRA requires employers to keep copies of TD1 forms submitted to them on file for at least 6 years.

What happens if I don't submit a TD1 form?

Employees who do not fill out new forms may be penalized $25 for each day the form is late. The minimum penalty is $100, and increases by $25 per day to the maximum of $2,500.

Do I have to file a new TD1 form every year?

No. Employees do not have to fill out new TD1 forms every year if their personal tax credit amounts have not changed.

What is the deadline to submit a TD1 form?

TD1 forms should be submitted on or before January 31 if they are with the same employer as the previous year, and one month after the date that their employment starts if they are with a different employer.

Can my TD1 form be updated after it's submitted?

No. However, should any important information be changed, an employee must complete and give their employer a new form within seven days of said change.

How do I get a TD1 form?

Visit the CRA site for a copy of the TD1 form for the current tax year.

What happens if I make a mistake on my TD1 form?

Mistakes on your TD1 form will cause your employer to send in the wrong amount of taxes to the CRA, which may cause you to need to pay for the discrepancy when you file your tax return.

Can I ask for a copy of a previous TD1 form?

Yes. Simply specify what tax year the TD1 form you are requesting a copy of to your employer, and whether you wish to receive an electronic copy or a paper copy.

What is the difference between a TD1 form and a T4 slip?

The T1 is a form filled out by employees and business owners, then submitted to the CRA. The T4 form, on the other hand, is filled out by employers and distributed to employees.