mlc1982
05-22-2012, 11:49 AM
Does anybody know if you can pay taxes monthly, beforehand, for the upcoming year? I've been trying to put money aside but it's so easy to dip into if needed. I don't want to be stuck with nothing come next tax season!
Inspired by Reggio
05-22-2012, 01:08 PM
Yup - you can arrange this through CRA ... personally I would never do it though cause I like to earn interest on my money as long as possible before handing any over to CRA ;)
If you lack 'willpower' to having your money just in a 'savings account' you could look into options like 60, 90 and 120 day locked in GIC ... they will earn you interest too but you cannot access the $$ until the time is up making 'impulse purchases' with that money impossible - when it matures you can reinvest again or transfer to your tax account if it is close to April payment time!
My tax savings account is set up that if takes 2 business days for my money to be 'released' to me so impulse spending with it is limited because you have time to rethink do I really NEED this but it is there should a true emergency arise and I had a big unexpected repair bill or something.