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CRA quarterly payments
August 16, 2018
2:23 pm
toto
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Follow up on the email I sent to cra .
I received an instant instalment reminder. I had been over threshold for years and never received a letter.
My email must have sparked a installment notice. Lol
I chose the no calculation option and paid it by debit my account .

August 16, 2018
4:13 pm
Top It Up
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Instalment notices came out this week SO maybe it's only a coincidence in timing that you received yours.

August 16, 2018
6:39 pm
Bill
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toto, same for me, I was well over for years, never got a notice, so now I just send them money every now and then throughout the year because I got sick of a big tax bill when I filed. From other acquaintances I've talked with it seems CRA's instalment calculation and notice system is missing a lot of folks, and I have no doubt your contact with them made them look at your file. They also really promote a "voluntary disclosure" program, and I'm convinced it's because they're not very good at catching non-compliance in the population at large.
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/voluntary-disclosures-program-overview.html

August 16, 2018
8:16 pm
AltaRed
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Top It Up said
Instalment notices came out this week SO maybe it's only a coincidence in timing that you received yours.  

Was also my thought.

August 16, 2018
8:42 pm
toto
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Thanks for feedback. Instalments are new to me so I just paid the amount that they had in the box.
I see they want me to remit on December 15th again and they have an amount, I was thinking of lowering it as i don't want to overpay and I'm never sure exactly the total of the t5's .
In bloggers experience is this acceptable?
Also when I do my taxes on line next March do the instalments that I made automatically come off of the amount owing or do I have to wait for the assessment?
Thank you

August 17, 2018
3:11 am
2of3aintbad
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toto said
Thanks for feedback. Instalments are new to me so I just paid the amount that they had in the box.
I see they want me to remit on December 15th again and they have an amount, I was thinking of lowering it as i don't want to overpay and I'm never sure exactly the total of the t5's .
In bloggers experience is this acceptable?
Also when I do my taxes on line next March do the instalments that I made automatically come off of the amount owing or do I have to wait for the assessment?
Thank you  

There is a line (478) on the T1 Form to enter the instalments that you made. No reason to wait for the assessment. Unless you can accurately calculate your income before December 15 (and if you have T5s you probably cannot), you will avoid hassle and possibly penalties by simply paying the amount CRA specifies. This may mean overpaying but that is the reality once you start down the instalment road.

August 17, 2018
5:56 am
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toto said

I see they want me to remit on December 15th again and they have an amount, I was thinking of lowering it as i don't want to overpay and I'm never sure exactly the total of the t5's.  

The September 15 and December 15 amounts that you see on your notice should be representative of the total taxes that you filed and paid on your 2017 T1. Using the total of those 2 instalments DO YOU expect to earn more than OR less than you did in 2017 … THAT should be your guidance on making your 2018 tax instalments.

As for your "… as i don't want to overpay …", it's not like you're not going to get the money back, if you have. I been paying quarterly instalments for over 25 years and I've never missed the mark by more than a couple a hundred dollars each year (I was over by $112.73, in 2017), either going with my own calculations or using one of their provided determinants, quoted below.

------------------------------------------

Here's verbatim what the CRA Instalment says and I think it states the options very clearly.

You have to pay tax by instalments in 2018 if your net tax owing for 2018 will be over $3,000 (over $1,800 if you live in Quebec). If not, you can disregard this notice. You can pay your tax by using one of the following options.

1. No-calculation option

- Pay the amount in box 2 by the due date in box 1.

- If you use this option, you can reduce your September 15, 2018 payment by the amount of any instalment payments you already made for 2018. You have instalment credits for 2018 totalling $x,xxx.xx.

2. Prior-year option

Pay three quarters of the total of your 2017 net tax owing and three quarters of any CPP contributions and EI premiums payable on September 15, and pay one quarter on December 15, 2018.

3. Current-year option

Pay three quarters of the total of your estimated 2018 net tax owing and three quarters of any CPP contributions and EI premiums payable on September 15, and pay one quarter on December 15, 2018.

You do not have to tell us which option you choose, even if, according to that option, you are not required to make payments.

August 17, 2018
8:37 am
toto
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Thank you for the help fellow bloggers! I think I've got my head wrapped around it now .
I looked at some tax forms and saw the line 478.
I have to keep better track of how the t5s fall to get a more accurate idea of total income, as i have many banks now , but pleased to say it goes up every year now.
Some people collect stamps and such, I collected banks over the years!

August 17, 2018
9:23 am
AltaRed
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Unless a person has a very odd (high) year of income, e.g. 2017, which would cause Sept18, Dec18, Mar19, Jun19 no-calculation (Option 1) payments to be excessively high, it is best to just use Option 1 and not get hung up on the amounts.

Only once did I revert to Option 3 and that was when I had a huge cap gain one year when I sold an investment property and had 5 digit worth of 'one time' cap gains taxes. I knew that would not be repeated and so did Option 3...but with generous assumptions on my income so I wouldn't end up outside the $3k threshold come April.

August 17, 2018
10:39 am
Loonie
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deleted. I don't think what I'd said was really helpful.

August 18, 2018
12:58 pm
toto
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New to cra account , do they send a receipt of my installment payment to my email?

August 18, 2018
2:04 pm
AltaRed
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toto said
New to cra account , do they send a receipt of my installment payment to my email?  

No. If you pay by Bill Payment (or Debit) out of your account, all you will see is the debit entry in your transactions.

August 18, 2018
2:32 pm
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toto said
New to cra account , do they send a receipt of my installment payment to my email?  

When you sign into your CRA account you will see a banner of options;

Tap on Accounts and Balances

Tap on Instalments

Tap on 2018

and you should then see the current Instalments Balance for your account (updated sometime after they have received your payment from your bank.)

August 19, 2018
8:05 pm
toto
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Thank you!

August 20, 2018
7:51 am
Kidd
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Today, Mon Aug 20th, i received my (let's make canada great again) bill from the CRA. It entails two payments, one for Sept 15 and the other for Dec 15, 2018.

I would rather keep MY money and allow canada to remain as it is. Money is best served in the hands of the consumer, governments fail to realize this. But i guess they continually need more feed for the trough they ALL have their heads buried in.

August 20, 2018
9:37 am
Rick
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Kidd said
Today, Mon Aug 20th, i received my (let's make canada great again) bill from the CRA. It entails two payments, one for Sept 15 and the other for Dec 15, 2018.
in.  

From CRA;
You do not have to pay your income tax by instalments for 2018 if your net tax owing for 2018 will be $3,000 or less ($1,800 or less for residents of Quebec), even if you received an instalment reminder in 2018.

August 20, 2018
10:46 am
Loonie
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... and you can accomplish that by paying a lump sum in December, thus keeping your interest flowing in all year from the money you might otherwise have paid out prematurely.

August 20, 2018
11:05 am
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August 20, 2018
1:33 pm
AltaRed
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Indeed. If an installment payment is late, interest will be charged. My ex missed one of her installment payments by a few days and she was charged interest on her NOA the following Spring.

IOW, if a taxpayer had been sent installment tax notices and no installments were actually made until December (and then paid in full), interest will (should) be charged for being late with the quarterly payments.

August 20, 2018
7:32 pm
Loonie
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The trick is to always keep ahead of the game by paying up in December so that you never owe more than 3K and never get any quarterly payment notices.

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