If you owe tax at filing time each year, you can take steps to reduce your net tax owing. You can do this by having tax — or more tax — deducted at source from certain types of income.
- You can ask to have tax, or more tax, deducted at source from employment income, pension benefits from an employer-sponsored pension plan, and old age security or Canada Pension Plan benefits.
- To have income tax deducted from old age security or Canada Pension Plan benefits, send a completed Form ISP-3520, Request for Income Tax Deductions to your Service Canada office. You can get this form online at www.servicecanada.gc.ca or by calling 1-800-277-9914.
- To have tax withheld from employment income or from pension benefits from an employer-sponsored pension plan, provide a completed Form TD1, Personal Tax Credits Return to your employer or pension plan administrator. You can get this form online at www.cra.gc.ca/forms or by calling 1-800-959-2221.
If you have a balance owing for this year’s tax-filing season, you can save time by paying online. You can pay online using your financial institution’s online banking service or using the Canada Revenue Agency (CRA) My Payment service, which allows you to make one or more payments in one simple online transaction. For more information on payment options, go to www.cra.gc.ca/payments.