The Personal Tax Credits Return (TD1) is a form used to determine the amount of tax to be deducted from your employment income. Read on to see if you need to complete new TD1 forms for the coming year.
The Personal Tax Credits Return (TD1) is a form used to determine the amount of tax to be deducted from an individual's employment income.
- If you only have the basic tax exemption rates in place, and your tax situation has not changed, you do not need to complete new TD1 forms, and no further action required by you.
- If you are eligible for any additional 2018 tax credits that exceed the basic tax exemption rates for 2018, you will need to complete new TD1 forms for the 2018 T4 year.
What is a TD1?
A TD1, the Personal Tax Credits Return, is a form used to determine the amount of tax to be deducted from an individual's employment income.
How to review TD1 amounts on file
Please review the TD1 information that is on file with Fraser Health by doing the following:
- Log into the myFHinfo system
- Go to the “View My Current Information” section
- Choose the TD1 Amounts option
- Review your Federal TD1 Exemption and your Provincial TD1 Exemption
2018 tax exemption rates
The basic personal exemption for 2017 for the Federal TD1 was $11,635 and the Provincial TD1 was $10,208. The new basic tax exemption rates for 2018 Federal TD1 Exemption of $11,809 and Provincial TD1 Exemption of $10,412.
How does this affect you?
If you only have the basic tax exemption rates in place and your tax situation has not changed, you do not need to complete new TD1 forms. There is no further action required by you.
If you are eligible for any additional 2018 tax credits that exceed the basic tax exemption rates for 2018 you will need to complete new TD1 forms for the 2018 T4 year. If new forms are not provided, your TD1 exemptions will be set to the basic personal exemption amounts for 2018.
All prior tax credits that were set up in the 2017 calendar year will be cleared as of December 28, 2017. The new tax rates will take place for the 2018 T4 year.
Additional taxes deducted from pay
If you are currently having additional monies deducted and you do not wish to make any changes then there is no further action required by you.
If you wish to increase or decrease your additional tax monies, you will need to provide us with a new TD1-Federal tax form with the new amount.
Additional 2018 tax credits you may be eligible for
If you have previously claimed for any additional tax credits other than the basic tax exemption credits, the CRA requires that all employees complete new Federal and/or Provincial TD1 tax forms each calendar year as the Federal and Provincial basic amounts change each calendar year.
Federal Tax Credits (Federal TD1 form only required)
- Canada Caregiver amount for infirm children under age 18 (for disabled children only)
- Additional Taxes Deducted (Please note if this is the only tax credit you are applying for, you are only required to complete the Federal TD1 form)
Federal and Provincial Tax Credits (both TD1 and TD1-BC Tax forms required)
- Tuition Credit (both Federal and Provincial tax forms required)
- Spouse or Common-law Partner Credit (both Federal and Provincial tax forms required)
- Eligible Dependent Credit (both Federal and Provincial tax forms required)
- Pension Income Credit (both Federal and Provincial tax forms required)
Note: If you are claiming any of these additional tax credits on your personal tax return instead of on your TD1 forms, you can disregard these instructions. No further action is required.
Updating your TD1 forms
You are required to submit your new tax forms to People Information and Benefits via fax at 604-520-4415 by Tuesday, December 19 at 4:00 p.m. Any tax forms received after that will be amended for the following pay period after the forms are received. Originals are not required to be submitted to our office.
When completing your new forms you are required to provide your legal name, address, SIN number, employee number and date of birth.
If you have any questions, please do not hesitate to contact Jacqueline Livingstone at email@example.com.
There are two types of TD1 forms: Federal and Provincial. All employees are required to complete a TD1 Federal 2018 and a TD1 BC 2018 form when you are hired and send the completed forms to People Information & Benefits via fax at 604-520-4415. If a change occurs, you must complete a new form no later than seven daysafter the change. To view your current TD1 amounts please log into the myFHinfo system.
More than one employer
Did you know you can only claim a basic personal exemption at one employer?
The CRA has asked employers to communicate to those individuals that have multiple employers. If you fall into this category, you can only claim the personal exemption once (i.e. with only one employer). If you claim the basic personal exemption at more than one employer it results in insufficient tax being withheld at source. Individuals are only entitled to claim tax credits, including the basic exemption, once per calendar year.
I have more than one employer, how do I know which employer I should claim under?
CRA indicates that if you have more than one employer, the employer that you earn the lessor amount is the employer where you should indicate on both the Federal and Provincial TD1 forms that you have more than one employer.
For example: You work at Fraser Health and earn $10,000 annually. You have another employer where you earn $20,000 annually. You would provide Fraser Health with a new Federal and Provincial TD1 form indicating that you have more than one employer. This will ensure that you only receive the eligible basic personal exemption once.
If you no longer have a second employer, you are required to complete new forms no later than seven days after the change.
As of pay period #1 (pay ending December 28/17), pay date January 05/18, the new 2018 tax exemptions will be implemented.
To make changes for 2018, print off and complete deductible amounts over and above basic personal exemptions, sign and return to People Information and Benefits by fax at 604-520-4415.
Visit our FH Pulse page for details.