Fillable Form TD1 (2024)

Fill and sign TD1 (2024) online and download in PDF.

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What is Form TD1?

The TD1 form, also referred to as the Personal Tax Credits Return, holds significant importance for Canadian employees as it plays a crucial role in determining the amount of federal and provincial/territorial taxes that should be deducted from their salary or wages (also referred to as the income tax deducted from their salary). Moreover, it serves as a means to claim tax credits and deductions, directly influencing an employee's net pay and overall tax obligations.

Prior to commencing employment or in the event of any alterations to the employment contract or the income and employment situation of the employee, employees are required to complete the TD1 federal or provincial form and furnish it to their employer. This form necessitates various details including the employee's personal information such as name, address, and social insurance number. Additionally, it requires details regarding the employee's marital status, number of dependents, and any additional income sources. The form provides a section dedicated to asserting tax credits, like medical expenses and charitable donations, which can effectively diminish the employee's total tax burden.

How do I fill out Form TD1?

You may find a fillable copy of Form TD1 here. Make sure to have all relevant documents, from provincial forms to any federal form with relevant financial information (as well as forms such as those containing information about the marginal tax rate imposed on your income) so as to ensure that all information entered is correct and accurate.

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 do tax deductions entail?

Tax deductions involve subtracting a certain amount from your taxable income, thereby reducing the total taxes you owe.

Is contributing to the Canada Pension Plan (CPP) obligatory?

Yes. All employed Canadians aged 18-70 are obliged to contribute to the CPP.

Can I electronically submit Form TD1?

Yes, provided your employer accepts electronically submitted TD1 forms.

How does completing a TD1 form benefit me?

Properly filling out a TD1 form can lead to a lesser amount of tax deducted from each paycheck, resulting in higher take-home pay.

Why do employers require Form TD1?

Employers utilize the information from the TD1 form to determine the appropriate amount of tax to be applied for each employee's paycheck. This is also important for employers' own tax returns, as the information can be used for various provincial and federal forms in order to calculate their applicable tax credits for a given pay period or tax year.

Are employers required to retain copies of submitted TD1 forms?

Employers are mandated to retain copies of each employee's TD1 form on record, while it's the employee's duty to notify the employer of any pertinent changes affecting their tax status.

Should your employment situation drastically shift, it is crucial to update your Form TD1 to reflect these changes, ensuring that tax deductions are accurately calculated based on your current income scenario and that your employer has an updated Form TD1.

How long must employers retain Form TD1 copies?

According to CRA regulations, employers must keep copies of TD1 forms on file for a minimum of 6 years.

What are the consequences of not submitting a TD1 form?

Employees failing to submit new forms may incur penalties, starting at $25 per day, up to a maximum of $2,500. Additionally, while fines may not necessarily be imposed on late or unfiled TD1 Forms, as the form is how employers determine how much to deduct from an employee's salary as income tax, not having the form filled out properly will result in the default amount being deducted from the employee's wages, regardless of any factors that might have reduced the amount deducted.

Even if you have a basic personal exemption or similar that makes it unnecessary to pay taxes or that already reduces the amount you must pay for your taxes, it is best to at minimum announce this to your employer so that they are aware of your particular circumstances.

Is an annual renewal of the TD1 form necessary?

No, employees need not fill out new TD1 forms annually unless their personal tax credits alter.

What's the TD1 form submission deadline?

TD1 forms should be submitted by January 31 if under the same employer as the prior year, or within one month after commencing employment with a new employer.

Can a TD1 form be updated post-submission?

No, but in case of significant changes, employees must complete and provide a new form to their employer within seven days of the alteration.

How can I obtain a TD1 form?

Access the Canada Revenue Agency (CRA) website to obtain the TD1 form for the ongoing tax year.

What repercussions arise from TD1 form errors?

Inaccuracies on the TD1 form may prompt your employer to remit incorrect tax amounts to the CRA, potentially necessitating payment for any discrepancies during tax return filing.

Can I request a prior TD1 form copy?

Yes, simply specify the tax year to your employer and indicate whether you prefer an electronic or paper copy. Prior forms can be useful for verifying existing form information, or if certain information is needed as one files a TD1 form for a new job, or if one is simply consulting their previous information in order to check how certain things have changed, such as tax credit amounts, provincial tax rates, whether or not they've paid too much tax, and so on.

How does a TD1 form differ from a T4 slip?

The TD1 form is completed by employees and business proprietors, submitted to the CRA, whereas the T4 form is filled out by employers and distributed to employees.