Tax forms for residency

[silverjelly]

It's definitely the T1213 form, as I filled it out last year and am waiting on my approval this year for the same. I believe everyone fills a TD1 form; this is what they use to calculate your taxable income and yada yada.

The T1213 is specifically used to decrease income tax taken out of your pay stubs.

[japlanet]

Originally Posted by silverjelly

It's definitely the T1213 form, as I filled it out last year and am waiting on my approval this year for the same. I believe everyone fills a TD1 form; this is what they use to calculate your taxable income and yada yada.

The T1213 is specifically used to decrease income tax taken out of your pay stubs.

I'm confused about this, if based on your TD1 they calculate that your taxable income will be 0, why would you need another form to get them to actually not withhold the tax?

Edit: the answer is on the T1213 itself

Use this form to ask for reduced tax deductions at source for any deductions or non-refundable tax credits that are not part of the Form TD1,
Personal Tax Credits Return.

So you only need a T1213 if you want to have less tax withheld than your TD1 would suggest (and tuition tax credits, for instance, are covered on the TD1). Basically this is only if you have a lot of capital loss deductions/alimony or want your RRSP deductions at the source rather than at the end of the year.

[KennethToronto]

Originally Posted by japlanet

So you only need a T1213 if you want to have less tax withheld than your TD1 would suggest (and tuition tax credits, for instance, are covered on the TD1). Basically this is only if you have a lot of capital loss deductions/alimony or want your RRSP deductions at the source rather than at the end of the year.

I think the T1213 is worthwhile if you are sitting on a pile of educational tax credits. Better to apply them at the source rather than waiting to the end of the year - because you're basically "lending" the government money and getting nothing in return for it!

[japlanet]

Originally Posted by KennethToronto

I think the T1213 is worthwhile if you are sitting on a pile of educational tax credits. Better to apply them at the source rather than waiting to the end of the year - because you're basically "lending" the government money and getting nothing in return for it!

My point is that if you want your withheld taxes adjusted because of tuition tax credits, then the TD1 takes care of that. Only if you wanted those withheld taxes adjusted for some other reason that is NOT covered by the TD1 would you need to file a T1213.

If you have enough tuition tax credits to not pay any income tax, then nothing will be withheld and all you have to do is the TD1.

The TD1 says

You can ask to have less tax deducted if on your income tax return you are eligible for deductions or non-refundable tax credits that are not
listed on this form (for example, periodic contributions to a Registered Retirement Savings Plan (RRSP), child care or employment expenses,
and charitable donations). To make this request, complete Form T1213, Request to Reduce Tax Deductions at Source for year(s) ____, to get
a letter of authority from your tax services office.

Not sure how that can be more clear.

The T1213 doesn't even have a place for tuition tax credits.

[silverjelly]

Originally Posted by japlanet

My point is that if you want your withheld taxes adjusted because of tuition tax credits, then the TD1 takes care of that. Only if you wanted those withheld taxes adjusted for some other reason that is NOT covered by the TD1 would you need to file a T1213.

If you have enough tuition tax credits to not pay any income tax, then nothing will be withheld and all you have to do is the TD1.

The TD1 says



Not sure how that can be more clear.

The T1213 doesn't even have a place for tuition tax credits.

The TD1 certainly does not cover that; like I said, it's mainly for determining taxable income. And you're right, there isn't a spot on the T1213 for education credits, but there is an "other" section that you tick off and you're allowed to provide explanation. What I did was attach a short paragraph describing how I wanted to use my many (many!) education credits to have less tax withheld from my paycheques.

[japlanet]

Originally Posted by silverjelly

The TD1 certainly does not cover that; like I said, it's mainly for determining taxable income. And you're right, there isn't a spot on the T1213 for education credits, but there is an "other" section that you tick off and you're allowed to provide explanation. What I did was attach a short paragraph describing how I wanted to use my many (many!) education credits to have less tax withheld from my paycheques.

Sorry, I'm still confused. If

your taxable income = your income - tutition credits

then why would you need to file another form for them to not withhold based on your tuition credits? If they are withholding based on your taxable income that should already take those credits into account.

[jmlconkl]

Hey Guys, just read through this thread and am still a bit confused. From what I understand, if my goal is to have NO deductions from my paychecks, and I plan to accomplish this by making use of my $80,000+ of tuition credits, I should do the following:

1. Fill out my TD1 and put $80,000 under Section 5 "Tuition, education, and textbook amounts (full time and part time)", even though the lengthy description beside this box doesn't specifically mention tuition credits.

2. Check the box on the back for "Total income less than total claim amount".

And that's it. It doesn't sound like T1213 would be necessary as long as we are sure it is ok to use tuition credits in Section 5 of the TD1. Please correct me if this is wrong.

Thanks!

[japlanet]

Originally Posted by jmlconkl

Hey Guys, just read through this thread and am still a bit confused. From what I understand, if my goal is to have NO deductions from my paychecks, and I plan to accomplish this by making use of my $80,000+ of tuition credits, I should do the following:

1. Fill out my TD1 and put $80,000 under Section 5 "Tuition, education, and textbook amounts (full time and part time)", even though the lengthy description beside this box doesn't specifically mention tuition credits.

2. Check the box on the back for "Total income less than total claim amount".

And that's it. It doesn't sound like T1213 would be necessary as long as we are sure it is ok to use tuition credits in Section 5 of the TD1. Please correct me if this is wrong.

Thanks!

This is my understanding as well. I ran it by my Mom's accountant and he agrees too.

[silverjelly]

Originally Posted by japlanet

This is my understanding as well. I ran it by my Mom's accountant and he agrees too.

From personal experience, the T1213 is absolutely necessary, but I'll let you see if that works for you. Good luck.