3

The previous month was the first month I have worked this year. I received gross pay of around $3400. However, approximately $500 was deducted for income tax. If I were to continue working for the rest of the year, I would likely get a tax refund since the actual rate I would pay (considering I have not worked for 6 months) would be far lower than the implied rate based on this paycheque alone. Is there a way to reduce the income tax deduction based on this?

For information, I am a resident of Canada. As far as I know, neither Form TD1 nor filing a Requst to Reduce Tax Deductions at Source would help.

1 Answer 1

2
+25

Your analysis seems correct; for full-year Canada residents, neither form TD1 nor T1213 provide for reducing withholding to account for only working part of the year.

This TD1 worksheet [PDF] does not reduce your withholding, either.

2
  • So then how can withholding be reduced?
    – wispi
    Aug 11, 2021 at 23:49
  • 1
    From the available information, your withholding cannot be reduced. Wait for your refund, is what the government seems to be telling you. Aug 13, 2021 at 16:06

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.