-> Multiple jobs - too much tax owing
I worked 3 different jobs at the same time last year - why
do I owe so much income tax?
When payroll deductions are calculated at each of your jobs, your salary or
wages for the payroll period are annualized to determine the
income tax rate. As a result, you are paying income
tax at a rate that assumes you will be earning the same
amount per pay period for a year.
If you are working at 2 or more jobs in the same month, and
this continues throughout the year, you may owe income taxes at the end
of the year. Your payroll tax deductions are determined by the TD1 forms (both federal and
provincial/territorial) that you fill out for the
employer when you are hired.
Individuals who have more than one employer at the same time
cannot claim deductions on more than one TD1 form. If total income from
all employers and payers will be more than the deductions claimed on the TD1
already filed with an employer, then the box "More than one employer or
payer at the same time" on the back of the TD1 form should be ticked, and
"0" should be entered on line 13 on page 1 of the TD1. Lines 2
to 12 should not be completed.
Use the Canadian
Tax Calculator for your province or
territory to estimate the tax that you will owe at the end of the year.
For more information on federal and provincial/territorial
TD1 forms, see our TD1 Forms article.
Tax Tip: It is mandatory
to fill out a TD1 form for each employer. Make sure the form is
Revised: May 25, 2012