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!
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
Hope that helps.
Phil Hogan, CA