Reduce Your Payroll Withholdings and Keep More Cash From Your Paycheck
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
