Reducing Tax on Paycheques

[silverjelly]

I have a question for current or past residents (probably not fellow first years as we're just starting):

 

Has anyone successfully used education credits to reduce the amount of income tax that is taken off the bi-weekly paycheques? For most people, which definitely includes myself, it makes more sense to have more immediate cashflow, rather than waiting for a big refund at the end of the fiscal year.

 

I thought that I had sent the necessary paperwork to the government (a while ago), but it doesn't look like it has gone through, based on the amount of tax that was deduced from my first paycheque.

 

There might have been something that I missed on the form.

 

Any help would be greatly appreciated! Thanks...

[ubcredfox]

Hey you need to fill out a T1D form and T1XX where the XX is the provincial abbreviation for wherever you happen to live.

 

These forms are available online. You submit them to your payroll department. Under the "total deductions" - the big black bold box - put in your total number of credits. I've been putting $80,000 for the last couple years, even though I don't have this extent of tuition credit. You should not be getting much tax taken off your pay cheque this way. I lose about 5%.

 

And yes, it's legit. Just make sure you don't spend the excess dollars, as depending on how much you are determined to owe Canada Revenue, you may need to pay at the end of year. Better this then paying interest on loans in the interim.

[silverjelly]

Hey you need to fill out a T1D form and T1XX where the XX is the provincial abbreviation for wherever you happen to live.

 

These forms are available online. You submit them to your payroll department. Under the "total deductions" - the big black bold box - put in your total number of credits. I've been putting $80,000 for the last couple years, even though I don't have this extent of tuition credit. You should not be getting much tax taken off your pay cheque this way. I lose about 5%.

 

And yes, it's legit. Just make sure you don't spend the excess dollars, as depending on how much you are determined to owe Canada Revenue, you may need to pay at the end of year. Better this then paying interest on loans in the interim.

 

Thanks. That's pretty much what I thought I did. I'll give them a call to see what's up.