Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Reduce the amount of tax withholdings from you paycheque
15 November 10 
Canadian Tax Q&A Question
Dear Phil,
I stumbled upon your website while searching internet for information on tax payments.
My income tax is being deducted from each paycheck. My spouse is self employed and pays taxes once a year. Because of the nature of her business (real estate) she can go for months without income and then have a few large payments; while my income is steady, but not sufficient to cover all expenses without dipping into credit cards. At the end we just about break even, but in the process incur couple of thousands of credit card interest that we could have avoided if my income tax was deducted annually (boosting my paycheck by about $500 every two weeks which could have been used instead of credit).
Do you know if there is a legal way for a salaried employee to have his income tax calculated and paid annually?
I would really appreciate you pointing me in the right direction!
Regards,
Regards,
XXXXXXX
Answer
Dear XXXX
You do have the option of completing form T1213 (just google T1213) and sending the completed form to CRA for approval. Once you receive approval you’ll be able to submit the approval letter to your employer for reduced withholdings on your paycheque. You can also view CRA’s guide here.
Withholding can be reduce for the following items:
- RRSP contributions
- Child care expenses
- Support payments
- Employment expenses
- Carrying charges
- Other
Hope that helps.
Regards
Phil
Phil Hogan, CA
250-661-9417
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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