Credits & Deductions, Forms & Schedules

TD1 Tax Form: Personal Tax Credits Return in Canada

What is a TD1 tax form?

The TD1 Personal Tax Credits Return is used to calculate the amount of income tax that will be deducted or withheld from your employment or pension income. It is called a personal tax credit return and personal tax credits (Non-Refundable Tax Credits) are taken into consideration when determining your tax withholding calculations.

How do I know which forms to use?

There are both federal and provincial/territorial TD1 forms and worksheets. And you should complete one for each employer or pension plan you may have administered.

Everyone should fill out a Federal TD1 form. In addition;

  • Employees who claim more than the Basic Personal Amount (or exemption) have to complete the provincial/territorial TD1 form of their province/territory of employment.
  • Pensioners who claim more than the basic personal exemption must complete the provincial/territorial TD1 form of their province/territory of residence.

You can find the provincial/territorial forms and worksheets here.

Is there a special form for those who get paid by commission?

Yes, if you get paid by commission and want to have less income tax deducted during the year because of your expenses, complete the TD1X – Statement of Commission Income and Expenses for Payroll Tax Deductions as well.

If you are a commission employee employed in Québec, use the Federal TD1X Form and the Provincial Form TP1015.R.13.1-V, Statement of Commissions and Expenses for Source Deduction Purposes.

How about fishers?

If you are a self-employed fisher and you want your designated employer to deduct 20% tax at source on your catch, use Form TD3F, Fisher’s Election to Have Tax Deducted at Source.

Any special form for Status Indians?

Status Indians who want to know if their income is taxable should complete Form TD1-IN Determination of Exemption of a Status Indian’s Employment Income.

Who keeps these forms?

After you complete the forms, you must give them to your employer or payer who should keep the completed forms with their records.

When do I have to complete this form?

  1. TD1 forms are most often used when an employee starts working for the company or begins receiving pension benefits.
  2. When you want to change the amounts you previously claimed. This could be a change in your personal situation where you have a spouse or eligible dependant you are supporting, or maybe you are eligible for the Disability Tax Credit.
  3. When you want to claim the Northern Residents Deduction for living in a prescribed zone (prescribed northern zone or prescribed intermediate zone).
  4. When you want to increase the amount of tax deducted at source so you don’t have to pay as much tax when you file your tax return. To change this deduction later, complete a new Form TD1. If you want to decrease the amount of tax deducted at source, use Form T1213 – Request to Reduce Tax Deductions at Source.

Do I have to complete the form yearly?

You don’t have to complete the form every year, only when your situation changes.

You only have 7 days after the change to submit a new form to your employer. If your employer does not have a TD1 form for you, he will make deductions allowing only for the basic personal amount.

What Edition of TurboTax Is Right for Me?

Answer a few simple questions on our product recommender and we can help guide you to the right edition that will reflect your individual circumstances.

You can always start your return in TurboTax Free, and if you feel the need for additional assistance, you can upgrade to any of our paid editions or get live help from an expert with our Assist & Review or Full Service*. But don’t worry, while using the online version of the software when you choose to upgrade, your information is instantly carried over so you can pick up right where you left off.

*TurboTax Live™ Full Service is not available in Quebec.