Reduce Your Payroll Withholdings and Keep More Cash From Your Paycheck
Posted on 13. Feb, 2010 by Phil Hogan, CA in Canadian Tax Tips
If you are one of the many that receives a sizable income tax refund at tax time your employer is possibly withholding more tax then is necessary. You have the legal right to apply to CRA and ask your employer to reduce your tax installment withholding to a level consistent with your annual income tax bill.
Simply fill out a form T1213 with CRA and once approved you’ll be able to ask your employer to reduce your tax withholding which in turn increases the amount you receive every payday.
Some of the reasons you may want to submit form T1213:
- You consistently contribute to an RRSP
- You incur sizable child care expenses
- You make support payments
- You pay for employment expenses
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If you would like to reach me to discuss a tax or accounting matter please call 250-661-9417 or email me at phil@philhogan.com.
The accounting and tax information provided on this website is for informational purposes only and does not represent binding professional advice. Appropriate tax treatment and advice will depend on an individuals particular circumstances and set of facts.
One Response to “Reduce Your Payroll Withholdings and Keep More Cash From Your Paycheck”
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Jackie67
04. Jun, 2010
for anyone interest in knowing if this works I can attest.
i submited this form to my employer and i get to keep a lot more cash each month than i use to get.
the only problem is i get a smaller refund at tax time.
jackie