What payment option should I use for my personal tax installments?

If your income this year is much less than last year’s income, you may want to use the current year option to calculate your instalment amounts. If this is the case, you can use Form T1033-WS, Worksheet for Calculating Instalment Payments, which is available at any income tax office.

In most cases, whether you choose the no-calculation, or prior-year option, you will pay roughly the same amount by the end of the year.

You do not have to use the amounts shown on your instalment reminders. However, Canada Revenue Agency will charge instalment penalties and interest in case you underestimate your instalment payments. If you do not receive an instalment reminder and believe you should have received one, contact your income tax office for details.

Please complete remittance reminder from Canada Revenue Agency and submit it with your instalment payment. You can make your payment free of charge at your financial institution. The teller will detach and keep the remittance form, and will stamp and return the rest of the reminder as a receipt.

If you prefer, you can send your payment and the completed remittance form to your taxation centre or to your local income tax office.

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A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.

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Pay Less Tax

A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.