My taxes this year, I have to pay in much more then expected, how do I go about paying by installments??

Question

I have my T1 (My return) here, I havent mailed it in yet, as I dont know how to go about paying installments. I will only need it into 3 months!! Thanks!!

Answer 1

Hi again Jesse, I have yahoo email enabled here, so please email me the details of what you need, and I will respond via email with you.

And, please disregard the other response posted here, obviously it's from south of the border and is NOT APPLICABLE to you.

ADDITIONAL INFORMATION @ 7:36 PM

The explanation as to why you may have to pay installments can be found at CRA's website direct link:

http://www.cra-arc.gc.ca/E/pub/tg/p110/p110-e.html#why

AS PER CRA:

Why do you have to pay tax by instalments?

You have to pay tax by instalments for the same reason that an employee has to have tax deducted from his or her pay. If you receive income that has no tax withheld or does not have enough tax withheld for more than one year, you may have to pay tax by instalments.

This can happen if you receive rental, investment, or self-employment income, certain pension payments, or income from more than one job.

Who has to pay by instalments?

You have to pay your income tax by instalments for 2007 if your net tax owing is more than $2,000:

in 2007; and
You have to pay your income tax by instalments for 2007 if your net tax owing is more than $2,000:

in 2007; and
in either 2006 or 2005.

I hope this information helps you Jesse.

ADDITIONAL INFORMATION @ 8:42 PM EDT

If you are required to pay installments Jesse, these can be paid via telephone banking with your bank, you just need to make sure that if you decide to go this route, that your bank applies the payments as CRA 2007 taxation installment payments.

Answer 2

Go to the below link. They will help you to assess your situation and will most likely be able to help you save money on the money that you owe...

BTW - The IRS compounds interest daily... so request an extension and get on it!!!

Answer 3

call the irs directly. they will bill you monthly if you set up a program with them. it works like a regular bill each month.