Here's important information about CRA personal tax installments:
Who Needs to Pay Instalments?
You may have to pay tax instalments if:
Your net tax owing for the current year will be more than $3,000 ($1,800 for Quebec residents).
Your net tax owing was more than $3,000 in either of the two previous years.
Instalment Due Dates
For most individuals, instalment payments are due on:
March 15
June 15
September 15
December 15
For farmers and fishers, there's only one instalment due date: December 15.
Calculation Methods
There are three options to calculate your instalment payments:
No-calculation option: Based on the instalments suggested by CRA in their reminder notices.
Prior-year option: Based on your tax owing from the previous year.
Current-year option: Based on your estimated tax owing for the current year
You can choose the option that results in the lowest payments.
Payment Options
You can pay your instalments through various methods:
Online banking
CRA's My Payment service
Pre-authorized debit through CRA My Account
At your financial institution
By mail (cheque or money order)
Consequences of Not Paying
If you're required to pay instalments and don't pay on time or in full:
You may be charged instalment interest
You may face an instalment penalty if the interest charges exceed $1,000
Remember, it's always advisable to consult with KKL CPA or contact the CRA directly for personalized advice regarding your specific tax situation.
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