If you are making RRSP contributions, you may be able to reduce the income tax deducted from your pay cheque.

One method is to ask your employer to make the contribution(s) to your RRSP directly and deduct the payments from your salary. The employer calculates the required income tax withholding based on the portion of your salary remaining after these deductions. Be prepared to provide evidence to your employer that the RRSP contributions will be deductible by you.

Alternatively, complete Form T1213, Request to Reduce Tax Deductions at Source, and file it with the Client Services Division of your Tax Services Office. If accepted, your employer will be authorized to reduce your payroll withholding. In addition to RRSP contributions, the T1213 process allows payroll deductions to be reduced for amounts such as spousal support payments, childcare expenses, charitable donations, employment expenses, rental losses, and interest and carrying charges on investment loans. Support for such deductions must accompany the T1213.

Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.