Question

The TD1 form is used by employees to claim federal personal tax credits impacting their tax deductions. Choose three of the tax credit amounts available on the TD1 (except the basic personal amount) and explain who might claim these tax credits and how this will impact the employee's tax situation.

Answer 1

TD1, Personal Tax Credits Return, is a form used to determine the amount of tax to be deducted from an individual's employment income or other income, such as pension income.

Individuals should fill out the form if they:

• Start a new job

• Start getting payouts from a new pension

• Their income situation has drastically changed and they need to change amounts on the form

• Want to claim the deduction for living in a prescribed zone (like Nunavut)

• Want to increase the amount of tax deducted at the source

have to complete the federal TD1 and, if more than the basic personal amount is claimed, the provincial or territorial TD1.

Individuals do not have to complete a new TD1 every year unless there is a change to their federal, provincial or territorial personal tax credit amounts. If a change happens, they must complete a new form no later than seven days after the change.

Here are some examples of credits you can claim:

• Basic personal exemption, up to $13,229

• Caregiver for infirm children up to $2,273 each child

• Caregiver for infirm spouse or common-law partner, up to $12,298.00

• Caregiver for infirm dependents over 18 years old, up to $7,276

• Age amount, if over 65, up to $7,276.00

• Pension amount, up to $2,000

• Tuition fees

• Disability tax credit, up to $8,576

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