How Working More Than One Job Impacts Your Income Tax Return

by Gilmore Antonio

A woman worried about income taxes

In today’s world, it’s common for people to take on more than one job — whether it’s a second part-time job, freelancing, or balancing multiple employers. While this can be a great way to increase your income, it also comes with important tax implications that you should be aware of before filing your return.

At Far East Accounting, we want you to feel confident and prepared when tax season arrives. Here’s what you need to know if you work more than one job:

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1. Your Income Adds Up — And May Push You Into a Higher Tax Bracket

Each employer looks at your job as if it’s your only source of income. But at tax time, the CRA (Canada Revenue Agency) adds all your income together. This higher total could place part of your income into a higher tax bracket, which means you’ll pay a higher tax rate on that portion.

💡 Tip: Even if both jobs seem like they’re in a “lower bracket” separately, the combined income might change the amount of tax you owe.

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2. You May Not Have Enough Taxes Withheld

Because each employer only sees their share of your income, they may not be withholding enough taxes overall. This often results in a surprise tax bill at the end of the year.

💡 Tip: To avoid this, you can ask one employer to withhold extra taxes or update your TD1 form to reflect your situation.

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3. Some Credits and Benefits Could Be Reduced

If your combined income is higher, you may see a reduction or even lose eligibility for certain income-tested tax credits and benefits such as:

• GST/HST Credit

• Canada Child Benefit (CCB)

• Other provincial or federal credits

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4. CPP and EI Contributions Might Be Duplicated

Each employer deducts CPP (Canada Pension Plan) and EI (Employment Insurance) premiums. With multiple jobs, you could end up overpaying. The good news is that any extra CPP will be refunded when you file your tax return. For EI, you may only receive a refund in specific circumstances.

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5. Filing Becomes More Complex

More jobs mean more T4 slips to track. Missing even one can lead to reassessments, penalties, or delays in processing your return.

💡 Tip: Keep all slips organized and consider working with a professional tax service to make sure nothing gets overlooked.

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Bottom Line

Working multiple jobs is a great way to boost your income, but it can also create challenges at tax time. Planning ahead and getting the right advice can help you avoid unexpected bills and ensure you’re maximizing your credits.

👉 At Far East Accounting, we specialize in helping individuals with multiple income sources — from part-time jobs to freelancing and beyond. We’ll make sure your taxes are filed accurately, and that you stay compliant while minimizing surprises.

📞 Contact us today at 780-839-8415 or email us at fareastacc1914@gmail.com to book your tax consultation.