TD1 Form – No Child Amount for 2015
Canada Revenue Agency provides employers with TD1 Personal Tax Credits Return forms, both federal and provincial. Employees and pensioners complete the federal form, indicating which non-refundable tax credits they can claim. If more than the basic personal amount is claimed on the federal TD1, then a TD1 should also be completed for their province/territory of residence. The total of the claimable credits is then used to determine the employee’s or pensioner’s federal or provincial claim code, which is used to calculate how much income tax will be deducted from their pay.
Employees who do not provide their employer with a new completed TD1 form when required may be subject to a penalty of $25 for each day the form is late, with a minimum penalty of $100, and a maximum penalty of $2,500.
Completing the form allows tax deductions to be reduced if the employee is eligible for tax credits other than the basic personal exemption. Students can report their tuition, education and textbook amounts on this form to reduce their tax deductions.
New: The federal child amount tax credit for dependent children under 18 has been eliminated for 2015, in conjunction with the introduction of the Family Tax Cut, increase to the Universal Child Care Benefit, and increase in the allowable deduction for child care costs. A new 2015 federal TD1 form should be filed for any employee who was previously eligible for the child amount tax credit. The Family Caregiver Amount (FCA) is available in 2015 for a dependent child with a mental or physical infirmity. See the FCA article for details. In 2014 the FCA was used to increase the child amount for a child with a mental or physical infirmity.
Other circumstances could require a change in the federal or provincial/territorial forms, such as getting married or divorced, uniting with or splitting up with a common-law spouse, turning age 65, or becoming eligible for the disability tax credit (doctor certification required).
The federal and provincial/territorial TD1 Personal Tax Credits Return forms can be found on the CRA website.