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    1 Reply Latest reply on May 11, 2011 6:48 AM by LUCKIEST

    Increasing income tax deductions

    amuthanjrv Wayfarer

      Employees can choose to have more tax deducted from the remuneration they receive in a year. To do this, they have to file a new federal Form TD1, that shows how much more tax they want deducted. This amount stays the same until they file a new Form TD1.


      You should advise part-time employees that it could be beneficial to  have more income tax deducted from the remuneration they receive by  completing Form TD1. In this way, they can avoid having  to pay a large amount of tax when they file their income tax and  benefit returns, especially if they have worked part-time for different  employers during the year.


        • Increasing income tax deductions
          LUCKIEST Guide

          Withholding is the tax that an employer deducts and  withholds from  employees’ wages every pay period.

          The withholding is based on the  employee’s  wages during that pay period and number of dependents.

          When  the employee  calculates his income taxes for the year, the amount of  taxes withheld helps  determine

          whether a refund is issued to the  taxpayer  or whether the taxpayer  owes more in tax.

          According to the I R S it would be ideal that the withholding is equal to the amount of tax owed.

          Almost impossible, but no tax due or refunded