Filing Form TD1, Personal Tax Credits Return

							Filing Form TD1, Personal Tax Credits Return

What's New
Under proposed changes, the federal TD1 has been revised, effect July 1, 2007, to
include a new non-refundable tax credit in respect of children under 18 years of age at
the end of the year. In addition, the spouse or common-law partner amount and the
amount for an eligible dependant have increased from a maximum of $7,581 to a
maximum of $8,929. The amount will be reduced by the partner or eligible dependant's
net income for 2007.


For the purposes of the Child amount only, employees can provide the required
information listed below to their employer electronically or in writing, rather than
submitting a revised Form TD1, Personal Tax Credits Return. You can distribute the notice
below to your employees to help them claim this new credit. Attach the completed
notices you receive from employees to their TD1 returns.
To employees: Forward the completed form to the Human Resources
department as soon as possible.


         Notice to employees - 2007 Child amount
Starting July 1, 2007, you will be able to claim a new non-refundable tax credit of $2,000
for each child under 18 years of age at the end of 2007. This credit was announced in the
March 2007 Federal Budget.

If you are claiming this amount, provide the following information to your employer to
decrease the amount of tax deducted at source from your salary, wages, commissions,
pensions, Employment Insurance benefits, and other remuneration you receive.


Your first name and last name:
Date of birth (YYYY/MM/DD):
Employee number:
Your address:
Your Social insurance number (SIN):
                                                                             ×    $2,000
Number of children born in 1990 or later:
                                                                                  =



Eligibility criteria for the Child amount - If a child born in 1990 or later resides with
both parents throughout the year, either parent (but not both) may claim $2,000 per
child. Any unused portion can be transferred to that parent's spouse or common-law
partner. If the child does not reside with both parents throughout the year, the parent
who is entitled to claim the amount for an eligible dependant can claim the child amount.

Send this information in writing, or electronically using this notice, to your employer or
payers’ Human resources department. It will be filed with your TD1 Personal Tax Credits
Return, and the amount of tax deducted from each pay will be reduced. This change will
remain in effect until you advise us that you are no longer eligible to claim the child
amount.

If you do not give this information to your employer, your tax deducted at source will not
be reduced. However, you will still be able to claim the child amount when you file your
T1 Income Tax and Benefit Return for 2007.
Payroll professional: Please file this notice in the employee's personnel/pay file as a
record of the request for the child amount deduction at source.

If you are eligible to claim other tax credits that will reduce the amount of tax deducted
at source, complete and submit a revised TD1 return. To get form TD1 2007 Personal
Tax Credits Return visit http://www.cra-arc.gc.ca/E/pbg/tf/td1/README.html or call 1-
800-959-2221.


What is a TD1?
TD1, Personal Tax Credits Return, is a form that must be completed by employees or
pensioners and given to their employer or payer. There are federal and provincial/
territorial TD1s. These forms are used by the employer or payer to determine the
amount of federal and provincial or territorial tax to be deducted from an individual's
employment income or other income, such as pension income. The employer or payer
should keep the completed forms with their records. Do not send us a copy.

Note
Individuals in Québec should use the federal TD1and provincial TP1015.3-V, Source
Deductions Return form.


Who should complete this form?
Individuals who have a new employer or payer have to complete the federal TD1 and, if
more than the basic personal amount is claimed, the provincial or territorial TD1.

Individuals do not have to complete a new TD1 every year unless there is a change in
their entitlements to their federal, provincial or territorial personal tax credit amounts. If
a change occurs, they must complete a new form no later than seven days after the
change.

It is a serious offence to knowingly accept a TD1 that contains false or deceptive
statements. If you think a TD1 contains incorrect information, call 1-800-959-5525.

If the individual does not complete these forms, you are still responsible for deducting
taxes, allowing the basic personal amount only. To find out how to calculate the income
tax after the TD1 has been completed, see Calculation methods for income tax.


Which form should be used?
In addition to completing the federal TD1:

   •   Employees who claim more than the basic personal amount have to complete
       the TD1 that corresponds to their province or territory of employment. To
       determine which is the province or territory of employment, see Which provincial
       or territorial tax tables should you use?

   •   Pensioners who claim more than the basic personal amount have to complete
       the TD1 that corresponds to their province or territory of residence.
  •   Individuals paid by commissions and who claim expenses can elect to use the
      TD1X, Statement of Commission Income and Expenses for Payroll Tax
      Deductions, to take into consideration the expenses in the calculation of their
      income tax.

      Note
      Individuals in Québec should use the federal TD1X and the provincial
      TP1015.R.13.1-V, Statement of Commissions and Expenses for Source
      Deduction Purpose.

  •   Fishers who want to have income tax deducted from their income should use
      TD3F, Fisher's Election to Have Tax Deducted at Source.

  •   Indians who want to determined if their income is taxable should complete the
      TD1-IN Determination of Exemption of an Indian's Employment Income.


Forms and publications
  •   TD1, Personal Tax Credits Return
  •   TD1-IN Determination of Exemption of an Indian's Employment Income
  •   TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions
  •   TD3F, Fisher's Election for Tax Deductions at Source
  •   TP1015.3-V, Source Deductions Return form (Revenu Quebec)
  •   TP-1015.R.13.1-V, Statement of Commissions and Expenses for Source Deduction
      Purpose (Revenu Quebec)