Who needs to fill out a TD1NB?
Anybody that is resident in New Brunswick and receives compensation for their work must fill out a TD1NB. In most circumstances, an individual should submit a form when they start working for a new employer. It is not necessary to submit a new form every year.
Generally speaking, anybody that meets one or more of the following criteria should fill out a TD1NB form and give it to their employer:
- They have started working for a new company.
- They are able to claim further tax credits due to disability, dependants under their care, or retirement.
- They have recently moved to New Brunswick (even if they are employed in another province).
- They wish to pay additional tax to the CRA.
In the final case, individuals may wish to pay extra tax throughout the year to avoid a lump sum when they submit their annual tax return. If somebody has a second source of income, for example, any applicable taxes will need to be declared and paid to the CRA annually. Instead, it is possible to “overpay” taxes on primary earnings throughout the year.
What are the tax credit entitlements for New Brunswick residents in 2021?
Information about relevant tax credits is contained in the TD1NB for 2021 itself. The CRA also provides a worksheet – called a TD1NB-WS – to help individuals determine income-dependent tax credits. An individual over sixty-five that earns between $33,359 and $73,939, for example, will need to calculate which credits they are entitled to using the worksheet.
It’s important for employees to note that not all tax credits are covered in the TD1 and TD1NB forms. Some credits, such as childcare and work expenses, must be claimed using other forms, some of which are submitted directly to the CRA. All documentation is available on the Canada.ca website.
Here is an overview of the main tax credits for New Brunswick in 2021:
- Basic personal amount – $10,564
- Aged over 65 with net income lower than $38,400 – $5,158
- Pension income amount – $1,000 (or full estimated pension amount if it is lower)
- Disability amount – $8,552
- Spouse or common-law partner amount (if you are supporting them) with net income less than $898 – $8,970 minus their income
- Caregiver amount for related dependant earning $898 or less – $8,970
- Amount for infirm dependents aged over 18 earning $17,038 or less – $4,989
What are the responsibilities of employers in regards to TD1NB forms?
It is the responsibility of individual employees to fill out and submit individual TD1NB forms, and failure to do so can incur fines.
However, as an employer, it is your responsibility to collect and store tax information. When you undertake recurring payroll tasks, you must make the relevant deductions from your employees’ earnings and pay the CRA.
Your company’s Human Resources (HR) or Accounting department should provide all new workers with a link to the relevant web page of the Candada.ca website where they can download a TD1NB. Alternatively, it is also possible for organizations to use custom TD1NB forms.
The CRA allows employers to create self-made TD1 and TD1NB forms, as long as they meet certain requirements as stipulated on the Canada.ca website. These requirements include mirroring the TD1NB published by the CRA, verifying the identities of employees, including a submission date, and storing the forms in a format that makes them accessible to the CRA on request.
Useful links
FAQ
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What is a TD1NB or New Brunswick Personal Tax Credits Return?
A TD1NB is a form issued by the Canada Revenue Agency (CRA). All employees that are residents of New Brunswick must fill out a TD1NB. As essential documents, they enable employers to calculate the amount of tax that needs to be deducted from their employees’ regular earnings.
Once an employee has filled out and submitted a TD1NB, either digitally or manually (with a paper form), their tax information will be stored by the organization for which they work. This information is used by the Accounting or Human Resources (HR) department when conducting payroll tasks.
There are two types of TD1 forms: federal forms and provincial forms. Federal forms cover tax credits that apply to all Canadian employees. Provincial forms, on the other hand, relate to specific localities. The letters which come after “TD1” in the labels for provincial forms refer to provinces in question. For example, “NB” in “TD1NB” stands for New Brunswick.
