Help! How to fill out TD1 if you have 2 different employers??

if you don't claim it (i.e. entering 0), your employer would make more tax deductions on your pay cheque and remit them to the government, and that is how you end up paying less taxes when you file your income tax.

At the end, you should be paying equal amount of taxes no matter what you put in. Only the time of payment is different, so it is really a choice you can make.

Enter zero*. You'll likely end up owing some taxes at year end anyways, because the part time employer will deduct too little, not knowing that you're in a higher tax bracket because of working somewhere else full time. No need to make taxes owing higher by also double claming credits.

* if you're savvy, though you could claim the credits again, estimate your total taxes owing at years end, and save the difference in a high interest savings account.

okay, so if i am getting this right:

i pay the same amount of tax no matter what.

by entering "0" i have a smaller pay cheque but i pay "less" tax when the taxman comes around.

if i claim it, i have a bigger pay cheque but i pay "more" tax later.

does it make sense to claim it, get a bigger pay cheque and put that amount towards paying down mortgage (or save it in high savings account), then come tax time just make sure i have sufficient funds to pay the taxman? this isn't illegal by any means, right?

You've got it all right, now.

As I said in my note to my last post, you could indeed defer payment of taxes till April and put that money to work for you in the meantime. Nothing untowards about it, as you see yourself, the CRA allows you to choose.

I do find it strange that they allow it, however, they usually are pretty rigid about wanting to get as much money now as they can. Look at the T1213, it takes them 2 months just to approve a decrease in source deductions!

In the past, when I've been the payroll person, I played with my deduction codes to increase my take home pay because I was making RRSP contributions or had other credits. I just couldn't be bothered with the long turnaround on the T1213. Technically what I did is not allowed, but it's such a small indiscretion (they get all their money at year end regardless) that I never had any trouble from them about it (I doubt their systems are even sophisticated enough to be able to make the connection to notice it).

thanks! i claimed it, let's see what happens

Bullseye wrote: ↑ In the past, when I've been the payroll person, I played with my deduction codes to increase my take home pay because I was making RRSP contributions or had other credits. I just couldn't be bothered with the long turnaround on the T1213. Technically what I did is not allowed, but it's such a small indiscretion

Actually today, you don't even need to send anything at all. All you have to do is bring your RRSP Limit statement for the year to payroll and if they see you have enough room, that should do it.

Nick99 wrote: ↑Actually today, you don't even need to send anything at all. All you have to do is bring your RRSP Limit statement for the year to payroll and if they see you have enough room, that should do it.

If they are changing it without a T1213, then they are not following the rules. I still work closely with payroll, and haven't heard of any changes.

http://www.cra-arc.gc.ca/tax/business/t ... enu-e.html

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You do not need a letter of authority to deduct less tax if you withhold any of the following amounts:

- contributions to a registered retirement savings plan (RRSP) provided you have reasonable grounds to believe the contribution can be deducted by the employee for the year

[quote="Nick99" post_id="4249503" time="1164941325" user_id="28972"]http://www.cra-arc.gc.ca/tax/business/t ... enu-e.html

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You do not need a letter of authority to deduct less tax if you withhold any of the following amounts:

- contributions to a registered retirement savings plan (RRSP) provided you have reasonable grounds to believe the contribution can be deducted by the employee for the year