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Paying income taxes owing
April 13, 2022
10:00 am
Norman1
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COIN said
On a somewhat related question. How are you paying the balance owing on your tax return (for those not waiting for a refund)?
a) Online
b) Paying at the bank
c) Mailing in a cheque
d) Putting a cheque in the CRA dropbox at 1 Front Street.

Unless it is over the limit (like EQ Bank's Payment-to-CRA limit of $100,000/payment), online banking bill payment:

CRA: Pay by online banking

Full list of methods, including wire transfer, is at Make a payment for individuals.

April 13, 2022
10:26 am
Bill
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I noticed the other day when I set up CRA as a payee via TD's Pay Bills that there was a note for the option to pay 2021 taxes that that CRA payee is only valid for one payment. So if you owe 2021 taxes and expect to pay this way with more than one payment it looks like it might not work for subsequent payments. Not a big deal, lots of other ways to easily send them money.

April 13, 2022
10:31 am
mustang
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I paid my amount owing by logging into my cra account-- there was a very prominent link to pay now!
Sets up a payment to be taken out of my checking account a week hence

April 13, 2022
11:57 am
savemoresaveoften
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online thru bank account the past 10 years. You just have to set up the new payee details (i.e. pick the correct year, whether its installment or tax owed) each year.
If you dont or choose the wrong one, you have to call them to have it move to the proper "section" even tho they are all under ur name / SIN

April 13, 2022
1:17 pm
Norman1
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Yes, one has to send the money to CRA through the correct biller, depending on what the money is for. Simplii Financial shows these three CRA billers:

  1. CRA (REVENUE) - 2021 TAX RETURN
  2. CRA (REVENUE) - TAX INSTALMENT
  3. CRA (REVENUE) - TAX AMNT OWING

#1 can only be done once per return. I suspect it messes something up at CRA if one does #1 from two different banks as I did one year.

April 13, 2022
2:03 pm
Alexandre
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Second year in a row I am paying taxes owed through CRA My Account, using Visa Debit from participating FI.

Before, I paid my taxes online through bank account, but I have found Visa Debit to be more convenient option.

April 13, 2022
4:38 pm
COIN
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"CRA (REVENUE) - 2021 TAX RETURN
CRA (REVENUE) - TAX INSTALMENT
CRA (REVENUE) - TAX AMNT OWING"

Is "CRA (REVENUE) - 2021 TAX RETURN" the correct account to use when one pays the tax owing on the 2021 tax return due on May 2, 2022?

April 13, 2022
4:48 pm
Norman1
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COIN said

Is "CRA (REVENUE) - 2021 TAX RETURN" the correct account to use when one pays the tax owing on the 2021 tax return due on May 2, 2022?

Yes, that's the one for the 2021 tax year return.

Had one added the CRA 2020 tax return biller last year to one's list of billers, it would have been updated by now to 2021.

April 14, 2022
4:51 am
savemoresaveoften
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Alexandre said
Second year in a row I am paying taxes owed through CRA My Account, using Visa Debit from participating FI.

Before, I paid my taxes online through bank account, but I have found Visa Debit to be more convenient option.  

Do you have to pay a fee to use visa debit ? If it’s similar to plastiq, that’s like a 2.5% fee, a hefty charge for convenience, esp when paying thru online banking is free.

April 14, 2022
5:28 am
Alexandre
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There is no fee to use Visa Debit, but participating FIs are just few: ATB Financial, CIBC, RBC Royal Bank, Scotiabank, TD Canada Trust.

The list of participating FI for Interac Debit is much larger. See all details here: Pay now with My Payment

I paid under $1,000 last year and owe almost $2,500 in taxes this year. I was concerned such large payment won't go through, but it went with no issues.

One thing to remember: with successful payment, money is taken from your bank account instantly, but gets reflected in CRA My Account within 1-3 business days. Till then, you'll see same "taxes owed" amount in CRA My Account as it were before payment.

April 17, 2022
5:47 pm
COIN
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In case anyone is interested, passed by 1 Front Street on April 16th. Yes, the CRA dropbox is still out front and, yes, it is still sealed.

April 17, 2022
6:02 pm
Norman1
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I guess the notice at the top of CRA: Office locations is what to go by:

COVID 19: Drop box available

Due to COVID-19, only the drop boxes located at the Jonquière, Sudbury, and Winnipeg tax centres are currently open.

In the table of locations further down the page, the Toronto office (1 Front Street West) does not have a  5  marker to indicate that its drop box is closed.

April 17, 2022
6:59 pm
COIN
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Norman1 said
I guess the notice at the top of CRA: Office locations is what to go by:

COVID 19: Drop box available

Due to COVID-19, only the drop boxes located at the Jonquière, Sudbury, and Winnipeg tax centres are currently open.

In the table of locations further down the page, the Toronto office (1 Front Street West) does not have a  5  marker to indicate that its drop box is closed.  

Wonder why 3 venues are open but Toronto is not? Curious. Good thing I had some other stuff to do downtown.

April 18, 2022
11:20 am
Norman1
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That Toronto location is a Tax Service Office, for dealing with the public, and not a Tax Centre, that actually receives and processes the paper returns.

Those three locations, with drop boxes still open, match CRA's current three mail-in addresses listed in Where to mail your paper T1 return.

April 18, 2022
3:59 pm
COIN
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In case no one has mentioned or any one is unaware.

"This new tax season will have a new deadline date on May 2, 2022. Because April 30 our usual tax deadline falls on a Saturday, The Canada Revenue Agency will extend the deadline to the next business day which will be May 2, 2022."

April 20, 2022
1:32 pm
COIN
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I filed my 2021 tax return early on April 20, 2022. Got my NofA and it shows a balance payable of $X which is fine.

Here's what surprised me. It said the balance of $X is due on May 18th (not May 2nd or April 30th). Is this a trick to charge me late payment interest?

April 20, 2022
3:53 pm
Bill
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I don't understand, you filed your tax return today and got an NOA back (how? email?) later in the day?

April 20, 2022
4:12 pm
COIN
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Bill said
I don't understand, you filed your tax return today and got an NOA back (how? email?) later in the day?  

I got an email alert from the CRA later on the same day as I had electronically filed the tax return to check my CRA account. I logged in to my CRA account and the NofA was there. It said to pay the balance due of $X by May 18th.

April 20, 2022
4:34 pm
AltaRed
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I got the same thing when I filed Monday so not sure what that means. One is supposed to pay the amount owing by, this year, May 2nd to avoid interest charges, so that is what it will be (have already paid anyway). There is no need to drag it out.

April 20, 2022
5:15 pm
Alexandre
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COIN said
I filed my 2021 tax return early on April 20, 2022. Got my NofA and it shows a balance payable of $X which is fine.

Here's what surprised me. It said the balance of $X is due on May 18th (not May 2nd or April 30th).

This is strange. I filed my tax return on April 14, both Express NOA and NOA state the following:

Pay-by-May.jpg

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