CRA quarterly payments | Page 3 | General financial discussion | Discussion forum

I haven't had occasion to use this strategy precisely. I do large RIF withdrawals in December, with correspondingly large withholding, and that's sufficient. I also have significant non-refundable tax credits with which to offset. So far I have not needed to do any voluntary deductions at source. Ask me again in a couple of years when my situation will likely have changed somewhat!

I can't see what difference it makes where the money comes from. It's going to be in December either way, so CRA is not going to be better off one way or the other.

I don't have the page in front of me but my recollection is that the need for quarterly payments is based strictly on whether you owe over 3K in April for X years, whatever the details are on years. I am less sure about how you extricate yourself once your're on the treadmill.
If you increase deductions at source voluntarily, there is nothing to prevent you from reducing them again when it is convenient as far as I can see, as it's based on estimated income.

I don't mind paying as you go but I hate overpaying, which was almost always the case when I was working; and I hate the nuisance of quarterly payments, which I or my attorney might forget. If necessary, I'd rather take deductions at source, e.g.CPP, but I would still try to leave an amount owing under 3K.

Top It Up said
Because the CRA goes to great lengths emphasizing QUARTERLY income tax instalments, personally, I would want a crystal clear understanding from them stating that a lump sum instalment EVERY December, in lieu of, is both acceptable and avoids attracting any late instalment payment interest charges.  

I can accept that if you never have had an instalment notice, a lump sum payment (or larger withholding) in December will work for a while, maybe forever. However, once you get the notice for quarterly instalments, that's a different story and I would not try it, even if someone from CRA says "that should be OK".

One is never required to make quarterly payments until one has owed over 3K at tax time for two years. I forget the details on how the two years are arranged, but the point is that there is no obligation until that line is crossed.

For those of you who are receiving RSP/RIF income, get your FI to take off extra tax and schedule your withdrawal for December. You will then have a place to enter it clearly on your tax form but still not pay until December. However, if you are already subject to quarterly payments, you will have to pay them as far as i can see. This is probably where a significant overpayment in December through the RSP/RIF would help, as it will reduce or eliminate the quarterly payment in future, perhaps not immediately.

Kidd would have had to have made his payment in 2017, not March 2018, in order for it to have helped him avoid quarterlies potentially.

Toto, if I were you, I would wait a year or two and just let CRA do the re-calculation regarding your changed circumstances. It's better than running the risk, less work, and less worry.

Just finished my 2019 paper return, ready to write a cheque, appears sending them a cheque with the return is no longer a payment option! I was probably the last one...…...