Paying taxes as a sole proprietor?

[schocker]

Dumb question. So I began work in March as a contractor at an engineering company and am working as a sole proprietor. I know that the tax installment deadline is June 15, so I would need to pay an installment by then. Reading through the revenue canada website, I am unsure exactly what amount to use though. If I was to use the current year option, how would I go about calculating the amount due for this installment as the chart they have to use incorporates info from my assessment http://www.cra-arc.gc.ca/E/pub/tg/p110/p110-e.html#P132_9468. Any info would be appreciated

[garnet]

if i'm not mistaken, why would you "have" to do installments as a sole proprietor? you're doing only your individual tax return still, so you just pay it as same as well
so in the mean time, set aside as you go through the year, your tax owing money into a high earn savings, then come april you'll have it covered
same with your GST monies

edit: okay, so is if you're expecting to be over the $3K mark

You have to pay your income tax by instalments for 2011 if your net tax owing is more than $3,000:
•in 2011; and
•in either 2010 or 2009.





Originally posted by schocker
Dumb question. So I began work in March as a contractor at an engineering company and am working as a sole proprietor. I know that the tax installment deadline is June 15, so I would need to pay an installment by then. Reading through the revenue canada website, I am unsure exactly what amount to use though. If I was to use the current year option, how would I go about calculating the amount due for this installment as the chart they have to use incorporates info from my assessment http://www.cra-arc.gc.ca/E/pub/tg/p110/p110-e.html#P132_9468. Any info would be appreciated

[schocker]

Yah I was kind of figuring that it would work that way. I am assuming since I got a refund for 2010 and did not owe tax, I would start paying by installments next year which would allow me to figure out how much I would be paying since I would have paid the balance due for 2011 tax year and would have a number to gauge from for my 2012 taxes since my income could fluctuate and I am not sure what it will be at the end of this year.