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How to Fill Out CRA Form T1213

Written by Jessica Steer
It’s that time of the year again; tax season is right around the corner. Because of that, it’s time to get your affairs in order. Depending on your financial situation, your taxes may not be very straightforward, and some extra forms may be required to be submitted. One of these forms you may come across is the T1213.
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    What exactly is the T1213 tax form? Well, another name for it is Request to Reduce Tax Deductions at Source. This means that this form will influence how much tax is taken out of your pay. Before you submit the request to your employer, though, you must submit it to the CRA (Canada Revenue Agency) for approval. Once it’s approved, you receive a letter that you can give to your employer to reduce taxes and have less money deducted from your income. 

    Filling Out the T1213 & Processing Time

    When it comes to filling out the T1213, you can do so through your MyAccount online or fill out a paper application. Once that’s done, you wait for approval before submitting it to your employer to reduce tax deductions on tax-deductible income. That said, it’s important to remember that your application won’t be processed immediately. It can take up to between 4-6 weeks to be processed. 

    Form T1213 Eligibility

    Not everyone will qualify for this, though. There are a few instances in which you should consider filling out a T1213. These are:

    • If you make high RRSP contributions
    • Get foreign tax credits
    • Qualify for a large medical expense tax credit
    • Employment expenses
    • Interest expenses
    • Non-refundable tax credits

    Really, if you’re anticipating a tax refund, then this could be a good option for you. You can save money throughout the year by paying fewer taxes instead of waiting until tax time to receive a refund. You can submit this form at any time. It’s recommended that you submit in October for the upcoming tax year. This form will have to be filled out annually. 

    T1213 OAS

    Similar to the original T1213 form, the T1213 OAS form is meant to be filled out if you’re looking to reduce the amount of income taxes you pay. The only difference is that you fill out this version if you’re on Old Age Security, also referred to as OAS. Specifically, you fill out this form if you’re looking to have the amount of Recovery Tax withheld reduced. 

    More or Less Income Tax?

    While the T1213 form will make it so you pay less tax, there may be reasons that you actually want to increase how much income tax comes from your paycheque. This is usually done if you receive the extra benefits of having a second income and want to avoid paying taxes when tax time rolls around. If this is something that you choose to do, you don’t have to submit this form to the CRA first; it can be submitted directly to your employer. This form is called a TD1, also known as: Personal Tax Credits Return. 

    TD1 and How Much Extra You Should Deduct

    If you choose to deduct more than the basic personal amount of your income, you may be wondering how much more to deduct. Well, that actually depends on how much you earn. Whether you pay it throughout the year or during tax time, it still has to be paid. That said, if you’re hoping to avoid a bill during tax season, then more is better. If you end up paying too much, then you’ll receive a refund, 

    The best way to figure out what you’ll end up owing is to calculate your annual salary and figure out which tax rate you fall into, federally and provincially. This will give you an idea of how much taxes you’ll likely owe for the year. If you want to take out more for reasons such as capital gains, then you’ll have to calculate the capital gain tax rate. 

    Federal Tax Rates

    Tax RateIncome
    15%On the portion of income from $0 - $53,359
    20.5%On the portion of income from $53,359 - $106,717
    26%On the portion of income from $106,717 - $165,430
    29%On the portion of income from $165,430 - $235,675
    33%On the portion of income that’s $235,675 plus

    Provincial Tax Rates

    Province/TerritoryTax Rate
    British Columbia5.06% for amounts up to $45,6547.7% for amounts between $45,654-$91,310
    10.4% for amounts between $91,310-$104,835
    12.29% for amounts between $104,835-$127,299
    14.7% for amounts between $127,299-$172,602
    16.8% for amounts between $172,602-$240,716
    20.5% on taxable income above $240,716
    Alberta10% for amounts up to $142,292
    12% for amounts between $142,292-$170,751
    13% for amounts between $170,751-$227,668
    14% for amounts between $227,668-$341.502
    15% on taxable income above $341,502
    Saskatchewan10.5% for amounts up to $49,720 of taxable income
    12.5% for amounts between $49,720 - $142,058
    14.5% on the amount over $142,058
    Manitoba10.8% for amounts up to $36,842 of taxable income
    12.75% for amounts between $36,842 - $79,625
    17.4% on any taxable income over $79,625
    Ontario5.05% for amounts up to $49,231 of taxable income
    9.15% for amounts between $49,231 - $98,463
    11.16% for amounts between $98,463 - $150,000
    12.16% for amounts between $150,000 - $220,000
    13.16% on any taxable income over $220,000
    Quebec15% for amounts up to $49,275 of taxable income
    20% for amounts between $49,275 - $98,540
    24% for amounts between $98,540 - $119,910
    25.75% on any taxable income over $119,910
    Nova Scotia8.79% for amounts up to $29,590 of taxable income
    14.95% for amounts between $29,590 - $59,180
    16.67% for amounts between $59,180 - $93,000
    17.5% for amounts between $93,000 - $150,000
    21% on any taxable income over $150,000
    New Brunswick9.4% for amounts up to $47,715 of taxable income
    14% for amounts between $47,715 - $95,431
    16% for amounts between $95,431 - $176,756
    19.5% on any taxable income over $176,756
    Prince Edward Island9.8% for amounts up to $31,984 of taxable income
    13.8% for amounts between $31,984 - $63,969
    16.7% on any taxable income over $63,969
    Newfoundland and Labrador8.7% for amounts up to $41,457 of taxable income
    14.5% for amounts between $41,457 - $82,913
    15.8% for amounts between $82,913 - $148,027
    17.8% for amounts between $148,027 - $207,239
    19.8% for amounts between $207,239 - $264,750
    20.8% for amounts between $264,750 - $529,500
    21.3% for amounts between $529,500 - $1,059,000
    21.8% on any taxable income over $1,059,000
    Yukon6.4% for amounts up to $53,359 of taxable income
    9% for amounts between $53,359 - $106,717
    10.9% for amounts between $106,717 - $165,430
    12.8% for amounts between $165,430 - $500,000
    15% on any taxable income over $500,000
    Nunavut4% for amounts up to $50,877 of taxable income
    7% for amounts between $50,877 - $101,754
    9% for amounts between $101,754 - $165,429
    11.5% on the amount over $165,429
    Northwest Territories5.9% up to $48,326 of taxable income
    8.6% between $48,326 and $96,655
    12.2% between $96,655 and $157,139
    14.05% on any taxable income over $157,139

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