Tax instalments are payments you make throughout the year to cover the taxes you normally pay in one lump sum on April 30 of the following year. You pay these instalments during the year while you are earning the income, similar to how an employer deducts tax directly from each pay period.
You may have to pay tax instalments for next year’s taxes, if your net tax owing is more than $3,000 (for Quebec $1,800) for 2023 and in either 2022 or 2021. Other circumstances where you may have to pay tax by instalments is if your income does not have enough tax withheld or if you are self-employed, have rental or investment income, certain pension payments, or have income from more than one job.
Individual taxpayers who pay income tax for the year through instalment payments do so by four prescribed deadlines each year. The fourth and final instalment payment for the 2023 tax year must be made on or before Friday, December 15, 2023.
Taxpayers who make instalment payments of tax will generally have received an Instalment Reminder, which sets out the suggested payment amount and the payment calculation options.
If you would like help with dealing with the CRA or would like to know more about taxable benefits, please feel free to call us at (905) 305-9722 or email us at info@eigenmachtcrackower.com and we will help you out!
