Video instructions and help with filling out and completing Fill Form 944 Pr Credits

Instructions and Help about Fill Form 944 Pr Credits

Hi I'm Debbie Peveril from Pan's financial training group and this video is about how to fill in your federal td1 form for 2021 this is a two-page form and the first box of it includes your name your address your date of birth and your social insurance number all information which you should be fairly easy to get and to fill in so that's the first box after that we move on to the numbers the box one includes the number 12,000 and $69 and it's pre-printed you'll see it already on the form that's the base amount that you're allowed to make in Canada in taxable income before you start to pay any federal income tax so that's what they call the basic exemption twelve thousand and sixty nine dollars in box two we have the caregiver mount this is a federal amount called the canada caregiver amount and it is for any child under the age of eighteen who is considered infirm and the amount is two thousand two hundred and thirty dollars and you can put that amount in for each child that you have who meets the criteria of being infirm box three is the age exemption if you are over the age of 65 at the beginning of 2021 then you could be entitled to a further claim which goes in this box so the way the amount works is if you earn less than thirty seven thousand seven hundred and ninety dollars then the amount of the claim is seven thousand four hundred and ninety four dollars if you earn over eighty seven thousand seven hundred and fifty dollars you can make no claim for this this exemption only applies to people whose income falls under the 37,000 criteria it doesn't apply to anybody who is over the eighty seven thousand seven fifty and of course there's a partial claim and we'll talk about that in the worksheet so if your income falls between thirty seven one thousand and eighty seven thousand then there's an amount you will be able to claim and it's at the end of this video locks floors your pension income this is an amount of pension you're receiving that is not CPP but is not OAS so this is a another kind of pension and the amount you put in that box is two thousand dollars and it's been two thousand dollars forever this is not an indexed amount so it's an easier one to remember box five is tuition if this is your own tuition and it is greater than a hundred dollars then in this box you put the amount of the tuition you've paid just the tuition not your room and board not your meals just tuition box six is the disability tax credit if you have a letter from CRA saying that you qualify for the disability tax credit then the amount that goes in this box is eight thousand four hundred and sixteen dollars box seven is a spousal claim if your spouse earns less than twelve thousand and sixty nine dollars then the amount you're allowed to claim federally is the difference between their income and twelve thousand and sixty nine dollars of course if you're supposed more than twelve thousand sixty nine dollars you don't have a claim in this box box eight if you don't have a spouse but you do have a child under the age of eighteen you have something referred to as an equivalent to married or equivalent to spouse type claim and that is the same thing twelve thousand and sixty nine dollars less the amount that your dependent child earns that's the amount you can claim in a course this is a child under the age of eighteen box nine is the canada caregiver amount which is an infirm spouse or and infirm dependent under the age of eighteen so in either category you have an amount to put in box nine box 10 is the canada caregiver amount for dependents age 18 and over there's a worksheet on that coming up shortly at the end of the video box eleven is the amount you can transfer from your spouse so if your spouse it doesn't have income enough to use the deductions and you can transfer the age exemption you can transfer the pension exemption and up to five thousand dollars in tuition so this again is only in the case when your spouse doesn't have this income box twelve is the amount transferred from other dependents besides your spouse so this would usually be the disability credit or tuition up to the amount of $5,000 so you now have numbers or zeros most likely in all the boxes from box one through to box 12 you add those numbers up they the total you get goes in box 13 and this is by and large the amount of income you can make in Canada and 2021 before you're going to have to pay federal income tax there are other things on this box on this F form on page two there's a very important box if you have more than one employer Canadians who have more than one employer have to be careful when they fill in these forms because the 12,000 and $69 you're allowed to make in a year you're only allowed to make once of course so if you fill in to td1 forms with two different employers and you put in the 12,000 each time you're going to have a tax bill when you file your return in April because you're only entitled to that 12,000 once and each of your employers has taken that from your income before they started deducting income tax so this isn't a mistake you want to make you want to put a tick mark in that box and not claim that 12,000 $69 twice there's also information there for non-residents if you.