I got the dreaded "Income Tax Instalment Payment Reminder" from CRA.

[SJW]

I’m in the same boat. I called and they said I don’t need to pay but there may be interest owed. It’s because of my rental income. Can pay April as I’ve always done in the past. They’ll get my money when I’m damn ready to pay it.

[Thaco]

yeah i have to make 2 payments, once before sept 15 and on e before dec 15

[16hypen3sp]

It's just absolutely incredible to me that they are going to charge interest on these installments when the fucking taxes aren't even due until April next year. Ridiculous.

[killramos]

So would the smart move be to rigorously estimate your taxes, send them only what you think you will owe as the instalment payments, and worst case your math is wrong and you pay a minute amount of interest on the amount that was in error.

Presumably the CRA can’t charge you interest on an amount that isn’t truly owed?

Or is that not how this works?

[Thaco]

This quote is hidden because you are ignoring this member. Show Quote

So would the smart move be to rigorously estimate your taxes, send them only what you think you will owe as the instalment payments, and worst case your math is wrong and you pay a minute amount of interest on the amount that was in error.

Presumably the CRA can’t charge you interest on an amount that isn’t truly owed?

Or is that not how this works?

no, they give you a specific amount you must pay to avoid interest fees

[killramos]

Interesting, i have only ever known people who have had this due to high net worth and substantial investment income. Is there some form of appeal process where you can bicker over the amount?

Or keep sending them letters appealing to push the date further and further in the future?

I would be surprised if there wasn't some mechanism?

[ExtraSlow]

They guess high and you have to pay ahead of time or pay interest. Yep, sounds like typical government bullshit.

[suntan]

This quote is hidden because you are ignoring this member. Show Quote

Interesting, i have only ever known people who have had this due to high net worth and substantial investment income. Is there some form of appeal process where you can bicker over the amount?

Or keep sending them letters appealing to push the date further and further in the future?

I would be surprised if there wasn't some mechanism?

Everyone has to pay installment tax now. Deficits cost money you know.

[tlapec]

I get this every yr, just make sure your tax owning next yr will be <3k you will not need to pay installments. There are 3 options given on the letter.

[revelations]

This quote is hidden because you are ignoring this member. Show Quote

Everyone has to pay installment tax now. Deficits cost money you know.

Thats just the tip of the iceberg. with the fucking fruit loop in Canada pissing away money, were not far off (within this generation) from government 'bail ins' where they take your money out of the banks like in many countries.

[16hypen3sp]

This quote is hidden because you are ignoring this member. Show Quote

They guess high and you have to pay ahead of time or pay interest. Yep, sounds like typical government bullshit.

That's exactly what's happening to me here. They are telling me that I need to pay almost $1k more than my entire tax owing bill for the 2018 year.

[rage2]

I’ve ignored these. First time I got them was when I made some stock sales at the end of the year, and the next year they wanted $40k a quarter in installments. Fuck that haha. As long as next years tax liabilities are met through deductions or you’re making enough installments to be at 0 owing at the end of the year, you won’t get charged interest or penalty. They called a few times asking for money, I explained the situation, they still wanted me to pay never explaining how it actually works.

The trick is to defer non deducted income until the reminders go away. You only get charged interest and penalty if they’re sending reminders for that tax year. Then the cycle starts again.

[dirtsniffer]

This quote is hidden because you are ignoring this member. Show Quote

Everyone else pays taxes throughout the year.. Why shouldn't you?

I could have my employer deduct no income tax and then pay it all come tax time. At least I'm pretty sure I can hahaha

[rage2]

This quote is hidden because you are ignoring this member. Show Quote

I could have my employer deduct no income tax and then pay it all come tax time. At least I'm pretty sure I can hahaha

And you’ll get the reminders next year that stops that from happening. Actually I’m not sure if employer is even allowed to do that.

[spike98]

I got one as well. They want $40k from me over the rest of the year. I got some inheritance (dads pension) that caused a decent bill last year. To which I paid on time. I won’t be owing anything for 2019, in fact I should get a decent amount back. Can I toss this bullshit?

[ThePenIsMightier]

This quote is hidden because you are ignoring this member. Show Quote

I got one as well. They want $40k from me over the rest of the year. I got some inheritance (dads pension) that caused a decent bill last year. To which I paid on time. I won’t be owing anything for 2019, in fact I should get a decent amount back. Can I toss this bullshit?

Inheritance in not taxable, so... WtF is going on, here?
Oh wait. It wasn't a cash infusion? You inherited his pension? I thought only spouses could get that.

[suntan]

This quote is hidden because you are ignoring this member. Show Quote

And you’ll get the reminders next year that stops that from happening. Actually I’m not sure if employer is even allowed to do that.

Nope. Minute you have employees you must do payroll monthly now.

[rage2]

This quote is hidden because you are ignoring this member. Show Quote

Nope. Minute you have employees you must do payroll monthly now.

Yea, what I meant was if employers are allowed to adjust to zero deductions on the request of employees. I know you can request to have more deducted. Not sure if other way is allowed.

[killramos]

This quote is hidden because you are ignoring this member. Show Quote

I’ve ignored these. First time I got them was when I made some stock sales at the end of the year, and the next year they wanted $40k a quarter in installments. Fuck that haha. As long as next years tax liabilities are met through deductions or you’re making enough installments to be at 0 owing at the end of the year, you won’t get charged interest or penalty. They called a few times asking for money, I explained the situation, they still wanted me to pay never explaining how it actually works.

The trick is to defer non deducted income until the reminders go away. You only get charged interest and penalty if they’re sending reminders for that tax year. Then the cycle starts again.

This sounds exactly like I was suggesting...

So who’s full of shit? Aside from the CRA obviously.

[jwslam]

This quote is hidden because you are ignoring this member. Show Quote

Whaaat? Damn dude I was just thinking about you the other day lol. Thot it was you walking into the SOC haha.

All the best to you! Back in Calgary full time?

Yea I'm a downtown office boy. I don't belong there.
I must have a doppleganger because I've been gone for 2 months now and that's the 3rd time I heard that people have seen me around.