Taxes

By law, HOOPP must deduct taxes from your pension payment.

Deductions are based on the personal tax information you reported to us as a new pensioner. HOOPP can vary the amount of tax deducted from your HOOPP pension, if:

• you report new or additional tax credits
• you request that less tax be deducted
• you request that more tax be deducted

Reporting tax credit to reduce tax withheld

Unless you complete the correct government forms, HOOPP assumes that the pension we're paying you is your only source of retirement income, and that you have no tax credits to claim beyond the basic personal credit.

If you have additional tax credits, such as a spousal credit, age credit, or tuition credit, you'll need to complete both a provincial or territorial TD1 form and a federal TD1 form. Provincial tax credits are claimed on one form, and federal credits on the other.

If you live in Quebec, there's only one form you need to complete, the TP-1015.3-V.

Upon receiving the signed forms, HOOPP will adjust the amount of tax withheld from your monthly pension.

Requesting an increase in taxes withheld

If you wish to have additional taxes withheld from your pension, complete only the federal TD1 form form and provide it to HOOPP.

Changes in tax rates can affect your pension payment

Did you know that the federal and provincial governments adjust their tax rates as often as twice a year? Sometimes these changes impact all HOOPP pensioners; sometimes they affect only a handful of pensioners.

To check the current tax rates, visit Canada Revenue Agency's tax rates page. CRA also offers a payroll deductions calculator to model the tax on your pension or other income.

Reporting your pension income

Every February, HOOPP will send you a T4A. This form shows the pension income you received from HOOPP during the previous year, and the taxes HOOPP has withheld.

The information on the T4A must be reported to the Canada Revenue Agency when you file your income tax return.