A Canadian Tax Scheme - The TD1 Tax Credit Return Form

Tax Credit Return Form

When I was attending Momentum here in Calgary, Alberta, Canada. I honestly believed this organization could not help me with anything beyond saving/managing money;  Boy was I wrong! When the Tax class came around, the students were in for on big ass surprise about misinformation about how taxes function on all levels and how families not financially literate are un/intentionally crippling their child/rens future in a big way.  Not only do people not understand how tax deductions work. But that in order to best maximize tax efficiency every year is to resubmit tax credit forms every January the 4th. The tax form in Canada is called the TD1 which employers give a new employee to fill out.  People, such as myself have fallen into the pit of only filling it out once and only once in our lifetime - this is if each of us are with the same company for more than one year.  

For those individuals employed with the same company throughout their life, you still have to resubmit your TD1 Form  each January as Tax Credits change. Even if the credits are either only a menial 4 cents to the dollar or most don't apply to you. You still could be missing out on what could be $15 per pay period. 

For many of us, myself included, who work or have worked for the main company or multiple companies in one year. Careful when you fill out the TD1 form from the company as if you do not put  a zero at the bottom box. The Government will believe you made twice the amount of money than your main source of income shows. Therefore unnecessarily double taxing you even if you show that you currently have small amounts of money to your name to show for it. I have had a full-time cashier job in 2014 and a part time cashier job on top of that. Since no one I know is aware of this issue made me aware of not double claiming tax credits for 2014, I may have missed out on tax credit I deserved even when the Government knows I am a low-income worker.

Since learning of this tax credit scheme made by the Canadian Government, this 2015 tax season I could be getting more back even though I have made less in 2015 than I had in 2014. My hope is you help yourselves to this tax saving tactic to avoid getting in financial trouble as I have been in all of my life. 

Best of Luck in the New Year

Kevin Miller