In today’s economy, many Canadians hold more than one job to supplement their income. Whether you’re juggling two part-time jobs, a full-time job and freelance gigs, or a seasonal job on the side, it’s important to understand how working multiple jobs affects your taxes. Filing taxes accurately when you have multiple sources of income is crucial to avoid unexpected tax bills, missed deductions, and penalties.
1. Do You Have to File All Jobs on One Tax Return?
Yes. In Canada, individuals file a single personal tax return each year (T1 General) that includes all sources of income—regardless of how many jobs you worked. The Canada Revenue Agency (CRA) expects you to report total employment income, self-employment income, and other earnings like tips or commissions on your return.
If you worked multiple jobs, each employer is required to issue a T4 slip, which summarizes your earnings and withholdings. You must include all T4s and any other income slips when filing your return.
2. How Does Working Multiple Jobs Affect Tax Withholding?
Each employer withholds income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums independently. However, the problem arises because employers base tax withholding on the assumption that the job is your only source of income.
This can lead to insufficient tax being withheld, particularly if:
- Both employers apply the basic personal amount to your earnings
- You end up in a higher tax bracket due to your combined income
This means you may owe tax at year-end unless you take proactive steps to manage withholding.
3. Choosing the Right TD1 Forms
When you start a new job, you fill out a TD1 form (federal and provincial) that determines how much tax your employer withholds. To avoid being under-taxed:
- Claim the basic personal amount on only one employer’s TD1 form
- Indicate “0” on Line 13 of your secondary employer’s TD1 to avoid the basic exemption
- Consider requesting additional tax be withheld on your secondary job using TD1 forms
CRA allows you to ask for voluntary withholdings to help balance your final tax bill.
4. Understanding the Combined Income Impact
Canada’s tax system is progressive, meaning higher income is taxed at higher rates. If your combined income from multiple jobs places you in a higher tax bracket, you’ll owe more tax overall than each employer withholds individually.
For example, if you earn $25,000 at one job and $30,000 at another, you’re not taxed as if you earned $25k and $30k separately—you’re taxed as if you earned $55,000. If your employers didn’t withhold enough tax based on your full earnings, you’ll owe the difference when you file.
5. Common Tax Slips for Multiple Jobs
- T4 slips: Provided by each employer
- T2125: For self-employed freelance or gig work (Uber, Fiverr, etc.)
- T4A: If you received contractor income
- T5: If you received interest or dividends
Be sure to collect all slips, even from seasonal or part-time jobs you may have forgotten.
6. Claiming Deductions and Credits
Multiple jobs may also mean multiple sets of expenses or credits you can claim:
- Union dues or professional fees paid through more than one job
- Transit passes (in eligible provinces)
- RRSP contributions: Especially important for reducing taxable income across multiple income streams
- Childcare or medical expenses: Based on total income
- Home office deductions if you’re self-employed in any role
Review the CRA’s list of eligible deductions carefully.
7. Watch Out for CPP and EI Overpayments
Each employer deducts CPP and EI premiums independently, but there’s a maximum annual contribution limit. If you overcontribute because you worked multiple jobs, CRA will automatically refund the excess when you file.
However, you must report all income accurately so CRA can calculate any overpayments and issue refunds accordingly.
8. What If You’re Also Self-Employed?
If one of your jobs is freelance, gig work, or consulting, you’re considered self-employed for that income stream. This means:
- You must report income using Form T2125
- You can deduct eligible business expenses
- You are responsible for paying the employer and employee portions of CPP
- You may have to remit quarterly instalments if your tax owing exceeds $3,000
Keep detailed records and receipts to support your claims.
9. What to Do If You Owe at Tax Time
If you’ve underpaid tax because of multiple jobs, here are your options:
- Set up a payment arrangement with CRA to avoid late payment penalties
- Increase tax withholdings at one or more jobs for next year
- Make RRSP contributions to reduce taxable income
- Track expenses to maximize deductions
10. Avoiding Common Mistakes
Here are errors to avoid when filing with multiple jobs:
- Forgetting to include all T4 or T4A slips
- Claiming the basic personal amount at more than one job
- Not accounting for higher tax brackets due to combined income
- Overlooking RRSP deductions that could reduce your balance owing
- Failing to report gig or side income
11. Filing Methods and Tools
You can file using:
- NETFILE software (like TurboTax, Wealthsimple Tax, or StudioTax)
- CRA MyAccount (for checking your tax history or NOA)
- Tax preparers for more complex income situations
- Free tax clinics (CVITP) if you qualify based on income
12. Final Thoughts
Working multiple jobs can increase your income and financial security—but it also complicates your taxes. Take the time to gather all your slips, understand how combined income affects your tax bracket, and avoid overclaiming the basic personal amount.
Proactive planning—such as adjusting withholdings, contributing to an RRSP, and claiming all deductions—can prevent surprises and even boost your refund. If you’re unsure, consult with a tax professional to ensure compliance and optimization of your return.
