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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.

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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.

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

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