The TD1ON form is a document that employers use to make sure they are withholding enough of your pay cheque for taxes so that you don’t have a big tax bill after you submit your yearly tax return. The form asks you about your tax credit eligibility so that your employer can assess your likely return. It is mandatory to complete a TD1ON form when you’re first hired.
You also may have to change the form if you become eligible for a new tax credit or lose eligibility for a credit you’ve claimed in the past. Here’s what you need to know about this form.
What is a TD1ON?
The TD1ON is Ontario’s version of the provincial TD1 form. This form asks you about your personal claims and eligibility to determine your provincial tax deductions.
What do Employers Do with TD1 Forms?
Using the information provided on the forms, either the TD1 federal or you provincial TD1, your employer will determine the amount of your tax deductions, in order to calculate your federal and provincial income tax withholdings from your pay cheque. If you fill out this form properly the amount your employer reduces your pay cheque by should be very accurate. Ensure that you read both sides of the forms very careful and answer all questions honestly for the most accuracy.
What is the Ontario Basic Personal Amount?
The Ontario Basic Personal Amount in 2020 is $10,783. You will see this amount printed on the top of the TD1ON form. This is the basic amount of earnings that are exempt from taxes for everyone working in Ontario. If your income will be less than this amount from all sources (including other jobs and self-employment) for the entire calendar year, then you can check the box on the back of the form, which has your employer not withhold any income tax from your pay cheques.
How to Fill Out a TD1ON Form
Read through the nine listed tax credits and indicate if you are eligible for any and then tally up the total at the end. It is very important for you to complete the form accurately and provide the total on line 10 for your employer for tax calculation.
Here is a quick guide to the tax credits so you can get a sense of whether you may be eligible for them:
- Age amount: If you are 65 and older (or will be by the end of the relevant tax year), and depending upon your income, you may be eligible for a full or partial claim.
- Pension income amount: Depending on your pension type and income, you may enter an amount here
- Disability amount: If you claim a tax credit for your disability, enter the listed amount here.
- Spouse or common-law partner amount: If you are supporting a spouse or common-law partner, depending upon their income, you may be eligible for a full or partial claim
- Amount for an eligible dependent: If you support a dependent relative (they must be eligible) and do not have a spouse or common-law partner, you may qualify for this tax credit, in full or partial.
- Ontario caregiver amount: If you’re caring for someone over 18 who is infirm you may be able to get a tax credit for them. This must be a relative, such as a child, grandchild, parent, grandparent, brother, sister, uncle, aunt, nephew or niece who is a resident of Canada.
- Amounts transferred from your spouse or common-law partner: Some of your spouse or common-law partner’s unused tax credits can be transferred to you.
- Amounts transferred from a dependent: Some of your dependent’s disability amount can be transferred to you if they will not use it.
It’s important to note that you cannot claim any of these tax credits twice. This means that if you have a second job, you should not claim anything on your second TD1ON, not even the basic amount. On side 2 of the form you will check the box that indicates multiple employers and follow the instructions. If you do not, you’ll be benefitting from the tax credits the same. If you did claim the credits at both jobs, you could have a large bill due at tax time.
Where to Get a TD1ON Form in PDF
Your employer should provide you with a TD1ON form as part of your hiring documentation along with your TD1, federal form. These can be located online, on the CRA Website.