Quantcast
2020 CRA Installments - Beyond.ca - Car Forums
Results 1 to 14 of 14

Thread: 2020 CRA Installments

  1. #1
    Join Date
    Jul 2010
    Location
    Not the NE
    My Ride
    Blue Dabadee
    Posts
    6,265
    Rep Power
    46

    Default 2020 CRA Installments

    Anyone else recently get some weird BS request from the CRA to pay installments?

    My wife was laid off from both of her jobs last march so she collected max CERB, then moved onto EI/Mat Leave toward the end of 2020. CRA sent her a letter requesting her to pay a $3,000 installment by March 15. Not convinced she will owe nearly that much ( hard to say where dust will settle as she has some outstanding T slips ) but whatever.

    Letter is pretty vaguely worded and makes it sound like the installments are kindof voluntary, unless they are not in which case they will charge interest ( which is BS considering the time of the year relative to tax filing season but whatever ).

    I assume this is around the whole CERB not being taxed thing ( Though notably if you are a CERB fraudster they are cool with you taking a couple years to pay it back interest free, fuck this country ).

    Anyone with experience around installments have advice? Is the "smart" move to pay the $3k JIC and see where it nets out once I file in April?

    Whole situation just seems so bizarre to me but whatever. Not interested in spending 6 hours on hold with CRA to ask them the question just for them to give me the wrong advice and not be liable for it.

    TIA
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

  2. #2
    Join Date
    Jun 2002
    Location
    Calgary, AB
    Posts
    1,889
    Rep Power
    15

    Default

    I've been asked to pay installments based on prior years income. I ignored it and they never followed up.

  3. #3
    Join Date
    Jul 2010
    Location
    Not the NE
    My Ride
    Blue Dabadee
    Posts
    6,265
    Rep Power
    46

    Default

    Yea the whole “it’s voluntary unless it’s not” thing is kindof BS
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

  4. #4
    Join Date
    May 2002
    Location
    Okotoks North
    Posts
    3,828
    Rep Power
    48

    Default

    You can ignore, and will not have any interest fees if you are confident you won't owe that much.

    Worse case if you're wrong, they'll charge the interest.

    I've missed paying it in the past and had to pay the interest, and I've also intentionally missed some when I knew I wouldn't owe by end of year and there was no interest penalty.
    ---

  5. #5
    Join Date
    Oct 2007
    Location
    YEG
    My Ride
    Lotus and a Honda.
    Posts
    294
    Rep Power
    0

    Default

    Nothing more fun then the government asking you to pay money you don't even owe yet.

    We recieved the letter last year for personal and business. Paid both thought it was mandatory. Was at the accountants yest and he said it's voluntary.
    Cereal Killer.
    @iambrianspilner

  6. #6
    Join Date
    Jul 2010
    Location
    Not the NE
    My Ride
    Blue Dabadee
    Posts
    6,265
    Rep Power
    46

    Default

    So smart move is probably to pseudo rigorously estimate her oweing before the 15th even if it’s not finalized and make the call?

    She made pretty well dick all last year aside from the CERB. Taxes owed on CERB should be 1k MAX if my marth is right.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

  7. #7
    Join Date
    May 2002
    Location
    Okotoks North
    Posts
    3,828
    Rep Power
    48

    Default

    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    So smart move is probably to pseudo rigorously estimate her oweing before the 15th even if it’s not finalized and make the call?

    She made pretty well dick all last year aside from the CERB. Taxes owed on CERB should be 1k MAX if my marth is right.
    Aren't tax instalments only triggered when you report income with no tax deduction for 2 years or more? That was my understanding anyway.

    The instalments are for the 2021 tax year, CRA basically expecting the same income sources with inadequate tax withholding so they're asking for the instalment payments. If you're expecting similar income for this year, then pay it to avoid the interest charges.
    ---

  8. #8
    Join Date
    Jul 2010
    Location
    Not the NE
    My Ride
    Blue Dabadee
    Posts
    6,265
    Rep Power
    46

    Default

    Good question. I really have no idea why she's being asked to pay installments. She's a teacher working for the CBE ( taxed ) and does a bit of swim coaching on the side ( Also taxed ). She has some investment income in addition but who doesn't?

    So sounds to me like something bizarre is going on beyond the CERB thing I assumed it was.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

  9. #9
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    716
    Rep Power
    11

    Default

    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Good question. I really have no idea why she's being asked to pay installments. She's a teacher working for the CBE ( taxed ) and does a bit of swim coaching on the side ( Also taxed ). She has some investment income in addition but who doesn't?

    So sounds to me like something bizarre is going on beyond the CERB thing I assumed it was.
    I think the cutoff is around 60K, the CRA is expecting income taxes from your wife based on the prior year and they haven't received it so then you get that letter. It's automated. You don't have to pay anything. If she did in fact make that much in 2020 you'll get dinged some interest but it's not very much.

  10. #10
    Join Date
    Jul 2010
    Location
    Not the NE
    My Ride
    Blue Dabadee
    Posts
    6,265
    Rep Power
    46

    Default

    Ok cool. Might be worth to risk the small amount of interest in the end versus parking 3k a quarter with them ( as if they don’t have enough of my money).
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

  11. #11
    Thaco's Avatar
    Thaco is offline sucks off little boys (ya, don't fuck with rage2 bitch!!!)
    Join Date
    Oct 2004
    Location
    Calgary
    My Ride
    Rage2
    Posts
    3,736
    Rep Power
    15

    Default

    Quote Originally Posted by kenny View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You can ignore, and will not have any interest fees if you are confident you won't owe that much.

    Worse case if you're wrong, they'll charge the interest.

    I've missed paying it in the past and had to pay the interest, and I've also intentionally missed some when I knew I wouldn't owe by end of year and there was no interest penalty.
    what's the interest like? i know they asked me for installments last year and i totally forgot, i owe them like 15k, so i am curious to see how they calculate interest on that.
    User title molested by Rage2.

    Quote Originally Posted by rage2 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It's not the size that matters, it's the taste it leaves in your mouth.

  12. #12
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    716
    Rep Power
    11

    Default

    Quote Originally Posted by Thaco View Post
    This quote is hidden because you are ignoring this member. Show Quote
    what's the interest like? i know they asked me for installments last year and i totally forgot, i owe them like 15k, so i am curious to see how they calculate interest on that.
    It used to be very miniscule, like 0.5%, it's more like 1.25% these days. But it's calculated a bit weird, since quarterly payment is all that's required only the first quarter's allocation would be charged a full period's interest, which is actually only 3/4 of a year since the payment is due at the end of that quarter.

  13. #13
    Thaco's Avatar
    Thaco is offline sucks off little boys (ya, don't fuck with rage2 bitch!!!)
    Join Date
    Oct 2004
    Location
    Calgary
    My Ride
    Rage2
    Posts
    3,736
    Rep Power
    15

    Default

    Quote Originally Posted by suntan View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It used to be very miniscule, like 0.5%, it's more like 1.25% these days. But it's calculated a bit weird, since quarterly payment is all that's required only the first quarter's allocation would be charged a full period's interest, which is actually only 3/4 of a year since the payment is due at the end of that quarter.
    oh, that's not so bad, probably a couple hundred bucks at worst.... might be better to just take the hit and invest that money.
    User title molested by Rage2.

    Quote Originally Posted by rage2 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It's not the size that matters, it's the taste it leaves in your mouth.

  14. #14
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    716
    Rep Power
    11

    Default

    Yeah I never pay the installments. I just take the < $200 penalty. Small price to pay for the liquidity.

Similar Threads

  1. CRA Warning

    By $lick_rYz in forum Society / Law / Current Events / Politics
    Replies: 5
    Latest Threads: 09-30-2008, 07:02 PM
  2. CRA is screwing with me, am I going to get audited

    By The Cosworth in forum Real Estate / Finance
    Replies: 15
    Latest Threads: 09-07-2008, 10:48 PM
  3. CRA: eBay.ca tax haven no more!

    By kenny in forum Society / Law / Current Events / Politics
    Replies: 0
    Latest Threads: 09-28-2007, 04:14 PM
  4. CRA call centre

    By jay42w8 in forum Careers
    Replies: 0
    Latest Threads: 08-23-2006, 07:30 AM
  5. CRA testing

    By desipwr in forum Careers
    Replies: 8
    Latest Threads: 06-08-2006, 09:38 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •