TD1 – Reduce Your Income Tax Deductions

What is a TD1?

This form will assist your employer to determine the amount of tax to withhold from your pay. This form is mandatory for new employees and should be updated when there is a change in your circumstances.  As the parent of a disabled child qualifying for the Disability Tax Credit you will elect to have these tax credits reduce your regular income tax withheld.  The alternative is to effectively give an interest free loan to the government as you wait to have these amounts refunded after you file your income tax return.

Where do I get these forms?

They will either be supplied by your employer or you can download them at TD1 Forms for 2014

What should I claim?

Firstly under Line 2 you will claim $2,255 for each child and $2,058 for your infirm child. The latter refers to the Family Caregiver Amount that you will claim on your tax return.

On line 12 you will claim $7,766 for 2014. This is for the “Disability Amount Transferred from a Dependent”. You could claim the disability supplement but this will be reduced if you claim child care or attendant expenses.  Best to be safe and leave it at $7,766. Likewise on the provincial TD1BC form you would similarly claim $7,402 on Line 11.

2 thoughts on “TD1 – Reduce Your Income Tax Deductions”

  1. This is the first time i have ever heard of doing this on tax form. My son has PDD-nos diagnosed in 2011, but have never claimed any of this.
    How does this affect my taxes to file for 2012 then?

    1. Filing the TD1 form only reduces the income tax withheld from your paycheck. It’s ultimately at tax time when you claim for all your credits that you will get a final determination of your tax owing.

      If you have not yet filed a T2201 in order to claim the Disability Tax Credit (and many other credits and expenses) you should have a look at my page

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