Navigating tax forms isn't exactly anyone's idea of a good time, but mastering the TD1 form can directly impact your paycheck. Small mistakes here mean less money in your pocket — or worse, a surprise bill come tax season.

Getting the TD1 form right isn't complicated, but knowing the details can help maximize your personal tax credits. This guide breaks it all down into nine clear steps, ensuring you're equipped to fill it out correctly every time:

• What the TD1 form is and why it matters
• Common mistakes to avoid at all costs
• Pro tips to boost your tax credit claims

Let's get going!

P.S. — Are you a homeowner who needs those credits sooner than post-tax season? Lotly can't control the CRA, but we can help you. We work with a network of 50+ trusted lenders across Canada to find the best, affordable home equity loan options for your financial goals. Book a free consultation today to learn more.

9 steps to fill out the TD1 form correctly

Step 1: Understand the purpose of the TD1 form

The TD1 form, or Personal Tax Credits Return, is used by employers to calculate the amount of federal and provincial/territorial income tax to deduct from your paycheck. There are two versions:

• Federal TD1 Form: For federal tax credits.
• Provincial/Territorial TD1 Form: For provincial/territorial tax credits specific to your residence.

Advice: You need to complete this form when:

• Starting a new job.
• Your personal tax situation changes (e.g., marriage, birth of a child).
• You want to adjust your tax deductions (e.g., claim additional credits or reduce withholding).

Pro Tip: Québec residents must also complete the provincial TP1015.3-V form alongside the federal TD1.

Step 2: Gather necessary information

Before filling out the form, have the following ready:

• Your Social Insurance Number (SIN).
• Personal details like name, address, and date of birth.
• Supporting documents for any additional credits you plan to claim (e.g., tuition receipts, caregiver documentation).

Advice: Ensure all information matches CRA records.

Pro Tip: Use the TD1-WS worksheet (if applicable) to calculate partial credits for complex claims like caregiver amounts or disability credits.

Step 3: Fill out personal information

Complete Section A with your basic personal details:

• First and last name.
• Date of birth.
• Address, including postal code.
• SIN.

Advice: Double-check for accuracy as errors here can delay processing.

Pro Tip: Use clear handwriting if completing a paper form, or type directly into the digital version for clarity.

Step 4: Claim the Basic Personal Amount (Line 1)

Enter the basic personal amount on Line 1. This is a universal credit available to all Canadian residents. For 2025, consult CRA guidelines for the exact amount.

Advice: If you have more than one employer or payer at the same time, claim this amount on only one TD1 form.

Pro Tip: If your total annual income is less than this amount, check the box on Page 2 to ensure no taxes are deducted from your income.

Step 5: Claim additional credits (Lines 2–12)

Review each line carefully and enter amounts for any additional credits you qualify for. Common examples include:

• Canada Caregiver Amount (Lines 2, 9–10).
• Age Amount (Line 3) if you are over age 65.
• Tuition Amounts (Line 5) for eligible students.
• Disability Amount (Line 6).
• Spousal/Common-Law Partner Support Amounts (Line 7).
• Eligible Dependent Amount (Line 8).

Advice: Refer to CRA’s guidelines or use worksheets like TD1-WS for accurate calculations.

Pro Tip: Attach supporting documents for any claims that require proof (e.g., tuition receipts, caregiver certifications).

Step 6: Calculate Total Claim Amount (Line 13)

Add up all amounts from Lines 1–12 and enter the total on Line 13. This is your "Total Claim Amount."

Advice: Double-check calculations to avoid discrepancies that could result in incorrect tax deductions.

Pro Tip: Use an online calculator or worksheet provided by CRA to simplify this step.

Step 7: Complete Page 2 (if applicable)

Indicate if you have multiple employers/payers by checking the appropriate box. This ensures proper withholding across all sources of income.

If your total income is less than your claim amount, check the box stating that no tax should be deducted from your paychecks.

Advice: Only check these boxes if they apply; misuse can lead to underpaying taxes and penalties later.

Pro Tip: Consult a tax professional if you’re unsure about claiming multiple sources of income.

Step 8: Sign and date the form

Certify that all information provided is accurate by signing and dating the form at the bottom of Page 1.

Advice: Unsigned forms are invalid and will not be processed by your employer.

Pro Tip: Keep a copy of your completed form for personal records.

Step 9: Submit the form

Provide the completed TD1 form(s) to your employer or payer. Do not send it directly to CRA unless requested.

Advice: Submit this form promptly when starting a new job or experiencing changes in personal circumstances.

Pro Tip: Use electronic submission if offered by your employer for faster processing.

Key points to remember

1. You do not need to complete a new TD1 form annually unless there are changes in your personal tax credits or employment situation.
2. Claiming excessive credits can lead to under-deduction of taxes and potential liabilities at year-end. Be conservative if you’re unsure about eligibility for certain amounts.
3. Due to unique provincial requirements, Québec residents must complete federal and provincial forms.

By following these steps carefully, you can ensure accurate completion of your TD1 form and avoid issues with tax deductions at source.

Criteria for claiming personal tax credits on the TD1 form

Generally, you'll need to consider the following when you're claiming tax credits:

1. Canadian Residency: You must be a resident of Canada for tax purposes.
2. Income Thresholds: Some credits are reduced or eliminated if your income exceeds certain thresholds.
3. Supporting Documentation: For many credits, you must provide proof (e.g., receipts, certifications) to validate your claim.
4. Single Employer Rule: The basic personal amount and certain other credits can only be claimed with one employer at a time unless you have multiple jobs and split the claims proportionally.
5. Life Events: Changes in your personal situation (e.g., marriage, birth of a child) may make you eligible for additional credits or require updates to your TD1 form.

Here are some specifics:

1. Basic Personal Amount (BPA)

Eligibility: Every taxpayer is entitled to this credit, which allows you to earn up to $16,129 federally in 2025 without paying federal income tax.

• Details:
  
  • This amount is automatically available unless you have already claimed it with another employer.
  • Provincial amounts vary (e.g., $12,932 in British Columbia).
• Pro Tip: If your total income is less than the BPA, check the box on the TD1 form to ensure no taxes are deducted from your pay.

2. Age amount

Eligibility: Available if you are 65 or older by December 31, 2025, and your net income is below a certain threshold (e.g., $39,826 federally).

• Details:
  
  • The federal age credit base amount is $8,396 for 2025.
  • Provincial amounts vary (e.g., $5,799 in British Columbia).
• Pro Tip: Use the TD1-WS worksheet to calculate a partial claim if your income is near the threshold.

3. Canada Caregiver Credit

Eligibility: For individuals supporting a spouse, common-law partner, or dependent with a physical or mental impairment.

• Details:
  
  • You can claim up to $7,999 federally for each eligible dependent.
  • Provincial amounts vary (e.g., $5,659 in British Columbia).
• Pro Tip: Attach medical documentation if required and ensure the dependent’s income does not exceed the allowable limit.

4. Disability amount

Eligibility: Available if you or a dependent has a severe and prolonged impairment certified by a medical practitioner.

• Details:
  
  • The federal disability credit is $9,428 for 2025.
  • Additional amounts may be available for dependents under age 18.
• Pro Tip: Ensure Form T2201 (Disability Tax Credit Certificate) has been approved by CRA before claiming this credit.

5. Spouse or common-law partner amount

Eligibility: You can claim this credit if your spouse or common-law partner’s net income is below a certain threshold (e.g., $13,808 federally).

• Details: The maximum claim amount is reduced dollar-for-dollar as your partner’s income increases above the threshold.
• Pro Tip: Update this section if your marital status changes during the year.

6. Tuition amounts

Eligibility: Students enrolled in post-secondary education can claim tuition fees paid to eligible institutions.

• Details: Unused tuition credits can be transferred to a parent or carried forward to future years.
• Pro Tip: Retain official tuition receipts from your institution as proof.

7. Eligible dependant amount

Eligibility: For single parents supporting a child under age 18 or another eligible dependent living with them.

• Details:
  
  • The federal maximum claim is $13,808 for 2025.
  • Reduced based on the dependent’s net income.
• Pro Tip: This cannot be combined with the spousal amount; choose whichever provides greater tax relief.

8. Pension income amount

Eligibility: Available if you receive qualifying pension income (e.g., annuities, RRIF withdrawals).

• Details: The federal pension credit is capped at $2,000 annually.
• Pro Tip: Ensure pension splitting with a spouse is reflected correctly on both TD1 forms.

Common mistakes when filling out the TD1 form (and how to avoid them)

Mistakes can lead to over- or under-deduction of taxes, potentially causing financial inconvenience. Here are common mistakes people make when completing the TD1 form and how to avoid them:

1. Overclaiming tax credits

Mistake: Claiming tax credits you are not eligible for or claiming the same credit with multiple employers.

Impact: This leads to under-deduction of taxes, resulting in a tax bill at year-end.

How to Avoid:

• Only claim credits you are eligible for and provide supporting documentation when required (e.g., tuition receipts for education credits).
• If you have multiple employers, claim the Basic Personal Amount (BPA) on only one TD1 form and check the "More than one employer" box on subsequent forms.
• Use the CRA’s TD1-WS worksheet for accurate calculations if claiming partial amounts (e.g., caregiver or disability credits).

2. Claiming incorrect income levels for multiple jobs

Mistake: Failing to account for total income when working multiple jobs or sources of income.

Impact: Underestimating total income can lead to insufficient tax deductions, resulting in a large tax bill at year-end.

How to Avoid:

• If you have more than one job, check the "More than one employer" box on Page 2 of the TD1 form for subsequent employers and leave Line 13 (Total Claim Amount) as "0."
• Ensure only one employer applies your personal tax credits.

3. Ignoring provincial/territorial TD1 forms

Mistake: Completing only the federal TD1 form but not submitting the corresponding provincial/territorial version.

Impact: Tax deductions may not reflect regional credits or thresholds, leading to inaccurate withholding.

How to Avoid:

• Complete both federal and provincial/territorial TD1 forms when starting a new job or moving provinces.
• Ensure that the amounts claimed align between both forms.

Federal TD1 form vs provincial TD1 forms

The Federal TD1 form and Provincial/Territorial TD1 forms serve similar purposes but differ in scope, reflecting the distinct tax systems of Canada’s federal and provincial/territorial governments. Here’s an in-depth comparison of the two, highlighting their key differences:

1. Purpose

Federal TD1 Form:

• Used to calculate federal income tax deductions from an employee’s paycheck.
• Covers tax credits and deductions that apply across Canada, such as the Basic Personal Amount (BPA), Age Amount, and Disability Tax Credit.

Provincial/Territorial TD1 Forms:

• Used to calculate provincial or territorial income tax deductions based on the employee's province or territory of employment.
• Reflects region-specific tax credits, rates, and thresholds, which vary significantly depending on the province or territory.

2. Geographic scope

Federal TD1 Form:

• Applies uniformly across all provinces and territories.
• Includes credits that are not region-specific (e.g., federal caregiver amounts).

Provincial/Territorial TD1 Forms:

• Specific to each province or territory, such as TD1ON for Ontario or TD1BC for British Columbia.
• Must be filled out based on the province where the employee works, not necessarily where they live. For example, if you live in Alberta but work in Ontario, you must complete Ontario’s TD1 form.

3. Tax rates and credits

Federal TD1 Form:

Uses a uniform federal tax rate and credit amounts. For instance, the federal BPA is $16,129 for 2025.

Provincial/Territorial TD1 Forms:

• Reflect provincial tax rates and BPA amounts, which vary widely. For example:
  
  • Ontario’s BPA is typically lower than the federal BPA.
  • Québec has its own unique system and uses a separate form (TP1015.3-V) for provincial taxes.

4. Examples of credits

Federal TD1 Form:

• Basic Personal Amount (BPA): $16,129 in 2025.
• Age Amount: For individuals aged 65+, federally set at $8,396 for 2025 (subject to income thresholds).
• Disability Tax Credit: $9,428 in 2025.

Provincial/Territorial TD1 Forms:

Credits vary by region. For example:

• British Columbia offers a provincial BPA of $12,932.
• Alberta has its own caregiver credits that differ from federal amounts.
• Québec’s system is entirely separate from the federal system and uses different credits and rates.

Key takeaways

Take control of your finances today with Lotly

Let's go over some of the key learnings here:

• Fill out both federal and provincial TD1 forms correctly. While the federal TD1 form applies across Canada, you must also submit your province-specific TD1 (like Ontario's TD1ON) to reflect regional tax credits accurately.
• Claim the Basic Personal Amount (BPA) only once if you have multiple employers. Checking the "More than one employer" box for additional jobs prevents under-deducting taxes, helping avoid surprise bills at tax time.
• Regularly update your TD1 form with major life changes. Events like marriage, childbirth, or starting school significantly impact your eligible credits, directly affecting the taxes withheld from your paycheck.

Failing to fill out the TD1 could mean you're leaving money on the table. But if you're a homeowner who needs cash — for work, retirement, a business — that's not the only untapped opportunity.

Lotly works with a network of more than 50 lenders nationwide to find you the best deals on secured home equity loans and lines of credit — personalized for your financial goals. That means more cash in your pocket at much better rates. Find out if Lotly is right for you today by booking a free consultation.

Frequently asked questions

What is the difference between TD1 and TD1 WS?

The TD1 form is the main form used to claim personal tax credits, such as the Basic Personal Amount (BPA), Age Amount, or Disability Tax Credit. It determines how much tax your employer should deduct from your paycheck based on your eligible credits.

The TD1-WS is a supplementary worksheet used to calculate partial amounts for certain credits that depend on income thresholds, such as the Age Amount, Canada Caregiver Credit, or Spousal/Common-Law Partner Amount.

What happens if I don't fill out my TD1 form?

If you don’t fill out your TD1 form (Canada Revenue Agency’s personal tax credit form) when required, your employer will automatically deduct income tax based only on the Basic Personal Amount (BPA), without accounting for any additional credits or deductions you may be eligible for — money on the table.

‍