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Email this4:09 pm
April 15, 2020
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suburbs4life said
Thanks for your suggestions guys.I only have one online cra payment account set up via online banking. I have paid my prior bi annual payments and personal tax owing via the same account without any issue last year. This year I am on the quarterly pay train and that could be the issue cause the dates overlap.
Thanks for that info Norman. I had no idea there are different cra accounts.... Why do I bother using overpriced accountants if they don’t tell me these simple details. Ugh.
By your logic Norman my instalment in March was never “received” then and counted as an early tax payment? Guess I’ll be calling them this week to sort this mess out.
It happens a lot. A couple years ago I had an adjustment. The amount was very small. I paid. The money was posted to the wrong account. I spent 1 hour 20 minutes waiting and talking with them. This year I owe a little. I have several CRA accounts that have credits. If you do not pay they take funds from these other accounts to cover payment. I expect about a month after Sept 1st to receive a notice that the balance is ZERO. Enjoy the summer.
4:21 pm
April 6, 2013
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suburbs4life said
…
By your logic Norman my instalment in March was never “received” then and counted as an early tax payment? Guess I’ll be calling them this week to sort this mess out.
Yes, I think that's what CRA now thinks: You have not made your March instalment payment yet and the instalment is now almost 3 months late!
You'll likely have to pay the missing instalment now and either overpay your next instalment or pay your next instalment 3 months early, to offset the 3 months of interest owing on the late first instalment. See bottom of CRA: Instalment interest and penalty charges:
How can you reduce your instalment interest and penalties?
You can reduce or eliminate the interest charges and penalties by overpaying your next instalment payment or by paying it early. By paying early or overpaying, you will earn instalment credit interest. This credit interest is not refundable and can only be used against any interest charges on late payments for the same tax year.
5:51 pm
September 11, 2013
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suburbs, why waste time on the phone, why not just send them whatever instalment amount you think you owe them now (due to this refund received) and label it instalment for 2020 taxes?
This is one reason I send them enough money before tax time (labelled as instalments) so that when I do file my return on April 30 my net tax owing never exceeds $3K, never have to worry about instalments.
8:44 pm
April 20, 2019
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Bill said
suburbs, why waste time on the phone, why not just send them whatever instalment amount you think you owe them now (due to this refund received) and label it instalment for 2020 taxes?This is one reason I send them enough money before tax time (labelled as instalments) so that when I do file my return on April 30 my net tax owing never exceeds $3K, never have to worry about instalments.
Bill
I’ll call my accountant this week to see what’s the best thing to do for my situation.
9:40 am
April 20, 2019
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Just an update on my dilemma after speaking with the CRA. My mistake was not paying my tax instalment as an “instalment bill payment option” on my online payment in March. Crisis should be averted and they will change the payment to an instalment at some point later this summer as they get to it. Rookie mistake on my part but now I know. Thanks for the prior advice everyone.
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