(February 12 – 12:00 ET) – Canada Customs and Revenue Agency is advising pensioners and pension administrators of changes that affect seniors who have tax withheld from their pension income. Starting January 1, the way to calculate provincial personal income tax has changed in nine of the provinces, but not Quebec, the Northwest Territories, the Yukon Territory, or Nunavut.

CCRA says that in order to make sure pension plan administrators have the information needed to withhold the correct amounts of tax from pension income, provincial personal tax credits returns (TD1 forms) have to be completed by: new pensioners; and pensioners who claim more than the basic personal amount on a tax return.

CCRA reminds pensioners to complete the provincial TD1 form that corresponds to their province of residence. They should allow a reasonable period of time to complete and return the signed TD1 forms to their plan administrators. To estimate the 2001 provincial credits for pensioners for the first pay periods of 2001, CCRA says administrators should use the federal TD1 information already on file and the 2001 corresponding provincial TD1 values.

Refiling a federal TD1 form is not required for 2001, except for new pensioners, or pensioners who want to change the amounts claimed on their federal TD1 form. In those cases, a new federal TD1 form for 2001, in addition to the provincial TD1 form, must be filed with a pension plan administrator.

TD1 forms are available on the Canada Customs and Revenue Agency (CCRA) Web site at www.ccra-adrc.gc.ca, and by calling 1-800-959-2221. Pensioners who need help to complete a federal or provincial TD1 form can call the CCRA general enquiries line, toll free, at: 1-800-959-8281.
-IE Staff