CRA quarterly payments | General financial discussion | Discussion forum

Kidd, if you ever get enough of bliss here's some info:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments.html

toto, in theory you're supposed to know if you need to make instalments and do it yourself, at least the first time, but if they haven't bothered you and you're not being charged interest by CRA then I guess you've got an exemption! I've had some years with a similar experience as yours, maybe they only get after you after some consecutive years of having to make instalments and the amount is big enough, I don't know. I'm one of those rare people who just transfers money into my CRA account on a random basis so that I come out about even at tax time, and they seem to be ok with that too.

One is considered late if one pays in full on filing when one was required to pay by installments.

Are you sure you are over the threshold?

The threshold is on balance owing (line 485) and not total payable (line 435).

Could have total payable of $10,000 each year. No installments required if $9,000 was withheld throughout the year and the balance owing is just $1,000 each year.

If you make voluntary payments during the year, you can avoid the notices, provided you pay enough, as others have suggested.
If, by planning ahead in Nov/Dec, you ensure that the amount owing next April is under $3000, then they won't be asking you for installments.
If you keep amount owing under 3000, you can keep that 3000 invested longer.
If you save up your voluntary payments until December, you can keep those invested longer too. Those who are taking out lump sums from RSP/RIFs will know by Nov/Dec how much they are taking out and can use that to pay the voluntary amount.
The longer you can keep your money invested, the more you have! By keeping an eye on what you actually owe, you can keep your voluntary payments below what you will owe in April, so you can hang on to your money longer - or at least 3000 of it.

Or you can just wait until they find you and do as you're told if this seems like too much bother.

I compare it to choosing equal monthly payments on my gas bill to even out high winter bills versus paying what I actually owe each month. I used to be on the equal payment plan, but discovered that I was overpaying more often than underpaying (although it would be reconciled later), so I switched back to paying for what I actually use. The gas company didn't like it when I did this and weren't sure if they would "allow" me, but they had no good reason not to as my credit was good. Any time they object, I figure I must be doing something right.

I looked for a notice on my CRA account that would require me to make installments, and there wasn't one, so I called and they said if you don't get a notification in the mail to remit that you don't have to. I've been way over threshold for 3 years now.

The 'rule' I've read many times is to simply do what CRA asks and there are no consequences, e.g. if they should have sent an installment payment notice and did not do so. It can make for some whacky swings in the size of installment payments from year to year if there is 'one off' lumps of income, but that just comes with the territory.

I read that too. It sounded confusing to me too, that's why I ended up calling .
I hope the representative gave me the right info though.

I actually just sent an email to CRA on this matter, so I could get it in writing to cover my butt in case they decide to charge me interest. I asked them to be crystal clear!!

When you do a voluntary payment,do you just do that through online banking with your SIN as the account number?
Is there any form or something to fill out first?..or can you just do it any time?

The CRA gibberish online is mostly intended to provide a written precis of their processes and policy, not definitive interpretations of the ITA. Their IT bulletins were somewhat better but really cannot cover all the nuances that are possible.

Repeating what I said earlier, just follow what the CRA tells you to do with respect to installment payments.

If you don't get any such notice, there are no installment payments required and in all the material I've read online from blogs, etc. there are no consequences of interest or penalties. FWIW, the best way to ensure you are getting notices is to sign up for online receipt of said notices in an Inbox in MyAccount. I've long ago dismissed the use of Canada Post for anything and everything possible that can be sent or received online.