If you earn income for more than one year that doesn’t have tax withheld, or perhaps not enough tax withheld, then you may have to make tax instalments.
Generally, this happens if you have business income, rental property income, or investment income on your personal tax return. You must make instalments if your taxes owing is greater than $3,000.
Instalments due dates are:
CRA will usually send out instalment payment reminders twice a year, based on the previous year’s tax returns. This does not necessarily mean that you are required to make those instalments. If your current taxes will be great than $3,000 then you should make instalment payments.
You can make instalments using CRA’s my payment service, or through your online banking. You can also use Form INNS3 Instalment remittance voucher if you prefer to pay in person at your bank.
For more information or to find out if you are required to make instalments, contact our office.