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.
