Tax Installments

[emmsmama]

Thanks for all the replies. Just to clarify, I know I have to pay the 5K due now before the end of this month. Actually, I think I have until the middle of June to pay it because I'm self-employed, but either way, I know I have to pay that very soon and am prepared to do so. To the poster who asked how I owe so much, I don't know, part of it was reg. taxes and part was CPP (over 2K was CPP). In previous years I've made less and owed very little, sometimes only CPP, but this year I made about 32K and it came out to about 27K after deductions, so I figured I'd have a good amount to pay.

I was wondering how installments work is all. I'd rather just pay one lump sum at tax time so I can keep my money in my own account until then, but I also didn't want to get hit with interest or penalty charges for installments I hadn't even been notified of. If the CRA sends me something with my bill for this year that says to make installments then I'll make them as that is simple enough, but I was just freaked out because I had never, in over 10 years of doing home daycare, had to make installments. Then again, when I looked back to 2005, which is the oldest records I have, I realized I've never made as much as this year or had to pay as much. Not that 30K is tons of money, but it's more than in past years

[kindertime]

Thanks for all the replies. Just to clarify, I know I have to pay the 5K due now before the end of this month. Actually, I think I have until the middle of June to pay it because I'm self-employed, but either way, I know I have to pay that very soon and am prepared to do so.

Advice...be sure to check on that. I believe self employed people have until June 15th to FILE their taxes, but the money is still owed on April 30th. Anyway, double check unless you're sure.

[5 Little Monkeys]

Advice...be sure to check on that. I believe self employed people have until June 15th to FILE their taxes, but the money is still owed on April 30th. Anyway, double check unless you're sure.

Yes, this is correct.

[Spixie33]

Last year I made nearly 40 K and the accountant said I owed $4400. He said that I would likely be asked to make prepaid installments during the 2014-2015 year but I never got any notice of the sort. I got my usual notice of assessment and was told how much I owe and I paid it off within a month or so and that was it. They did not ask me to make payments towards the 2014 tax year.

So this April I did my taxes for 2014 and again I owe over $4000. I set aside about $100 a week so I am pretty much ready. I think over 2000 was CPP and another 2000 or so was income tax.

Don't panic about the installment part - because it was told to me but never came to happen.

BTW - you can call Revenue Canada and ask to make a monthly payment if you can't afford to pay what you owe all at once. I have done a monthly payment plan with them because I got blindsided by what I owed.