Income tax is a mandatory deduction from your wages in Canada. The amount of income tax deducted depends on your income and the province or territory in which you live. You may be able to request that your employer not deduct income tax from your wages if you meet certain conditions.

The Canada Revenue Agency allows taxpayers to request that income tax not be deducted from their wages if they meet certain conditions. To make this request, you must complete form T1213, “Request to Reduce Tax Deductions at Source.”

In order to qualify for this request, you must demonstrate that deducting income tax from your wages would create financial hardship. Financial hardship is defined as being unable to pay for “basic living expenses.”

Your employer will not deduct income tax from your wages if granted this request through a letter of authority. However, you are still responsible for paying income tax on your earnings. The CRA may contact you at the end of the year to request that you pay the income tax that you owe.

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