Did you fill in a new TD1 form (view here) at work yet for 2017?
This is a form that should be completed each year that you are employed.
Business owners should have asked their employees to do this by now. Some provinces also require a provincial TD1 form. The province that I work in – Nova Scotia – has a separate form, so Nova Scotians need to fill in two forms.
This form filling will make a Nova Scotian sad because the federal government allows you to make $11,635 before you have to pay personal tax but the province of Nova Scotia only allows you to make $8,481. This is one of the hidden ways that Nova Scotians pay more tax – we get higher rates and lower exemptions.
The TD1 form is particularly important for people who work more than one job.
If you were to have a second job where you made less than $10,000 in a year, that employer would not be taking any income tax deductions unless you asked them to.
This will also make you sad because when you put both of your T4’s on your personal income tax return you are going to owe money because each of your employers will have considered the $11,635 you are allowed to make, and you are only entitled to that deduction once. At this point the employee often thinks that one of their employers has “not taken enough off” their paycheque. And this is the truth but it is not the employers fault.
So here is the message – if you fill out more than one TD1 form you should only claim the “basic personal amount” once.