TD1 FAQ

New employees and employees who have experienced a change in the type of tax deductions they are eligible for are asked to fill out Personal Tax Credits Return forms known as TD1s. Below are some of the most frequently asked questions about these forms. 

Am I required to complete a TD1 if I am being paid by UNB?

You are required to complete and submit a TD1 if you will be earning employment income from the university. If an employee does not fill out a TD1 or TD1NB form, UNB will deduct taxes after allowing for the basic personal deduction amount only. This may mean that the employee ends up paying more taxes than they are required to at the source, so it is in the employee's best interest to fill out this form.

How many TD1 forms do I have to fill out?

You have to complete a federal TD1 for regulatory purposes as prescribed by Revenue Canada if you are earning employment income. If you are only claiming the basic personal amount for deductions, you are not required to complete a provincial TD1NB form. If you are eligible for any other New Brunswick tax exemptions (e.g. tuition and education amounts, disability amount), you must complete a TD1NB form and submit it to the Payroll office if you want less taxes to be deducted from your pay.

What address should I put at the top of the forms?

You must provide a valid off-campus address to which a T4 can be sent for regulatory tax purposes. Otherwise, the T4 or T4A slip may not be sent to the correct address, or the slip may not be mailed at all until a valid address is provided.

What parts of the form should I be most concerned about as a student employee?

The Basic Personal Amount is already filled in for you. If your combined annual earnings will be less than the Basic Personal exemption, be sure to check Total Income Less Than Total Claim Amount on the second page of each form. 

You may claim your tuition and education amounts on this form if you want to pay less taxes at the source, or you can leave these sections blank and later claim your tuition and education amounts when you file your income taxes. In other words, you choose to pay less taxes initially or to pay more taxes initially and be reimbursed later on.

What parts of the form should I be most concerned about as a regular employee?

The Basic Personal Amount is already filled in for you. If you are entitled to any tax exemption other than the Basic Personal Amount, and you want to reduce the amount of taxes that you pay at the source, you must fill in the applicable sections on both pages of both forms.

You may also choose to have additional taxes deducted at the source by filling out the appropriate section on page 2 of each form.

What parts of the form should I be most concerned about as a postdoctoral fellow or visiting scholar?

Section 56(1)n(i) of the Income Tax Act states that doctoral and postdoctoral fellows may elect to not have taxes deducted at the source of their income. However, this does not mean that postdoctoral fellows or visiting scholars are entitled to a tax exemption; rather, it indicates that taxation is deferred until tax slips are issued annually for regulatory reporting purposes to Canada Revenue Agency.  

What parts of the form should I be most concerned about as a researcher?

Under 56(1)(o) of the Income Tax Act, a grant recipient may elect to not have tax deducted at source. As with postdoctoral fellows, this does not represent a tax exemption; instead, it represents a deferral of taxation until tax slips are issued annually for regulatory reporting purposes to Canada Revenue Agency.

For more information on TD1 forms, please contact the Payroll office.