Hi bobbyjan,
It's vital you're aware of which tax credit amount to use. I'll be glad to share more info about this.
In 2020, the maximum Basic Personal Amount (BPA) was increased from $12,298 to $13,229 for individuals with a net income of $150,473 or less. The increase is gradually reduced for individuals with net income between $150,473 and $214,368. If your net income is above $214,368, the change does not apply to you. Your BPA will be $12,298.
In addition, the maximum BPA will be increased to $15,000 by 2023 as follows:
- $13,808 for the 2021 taxation year,
- $14,398 for the 2022 taxation year, and
- $15,000 for the 2023 taxation year, and indexed for inflation for subsequent years.
Individuals whose net income is too high to benefit from the increased BPA will continue to claim the existing BPA. This existing amount will continue to be indexed for inflation each year.
If you decide to use a specific amount, here are the steps you'd need to follow in order to accomplish this:
- Select Employees.
- Select the name of the employee.
- Select Edit ✎ beside What are [employee's] tax withholdings?.
- Enter the employee's TD1 information, provincial taxes, and tax exemptions.
- Select Done to save.
In case you have other questions, feel free to contact our support team using this link here.
