Houzz Logo Print

How some Canadians may defer some current income tax payment

14 years ago

A while ago, when I began to collect pensions, I had only a small amount of income tax deducted at source. This resulted in my being required to send a cheque for a substantial amount with my tax return in the following April.

I was told that, since the amount that I needed to send with the return was over $2,000.00, I would need to pay the approximate amount of my tax owing in quarterly installments in the following year.

As I preferred my former method ... it would be handy to have those funds available in case of emergency ... and since I sometimes missed the deadline of March 15 or one of the later ones, which resulted in my being charged interest on the late payment ... compounded daily, yet ... I was even less impressed with that situation.

So I considered asking a pension carrier to deduct a small amount from my monthly cheque, enough to make the amount owing with the return under $2,000.00.

About that time, they increased the exempt amount to $3,000.00 ... and as I did not have to send that much with my tax return, it enabled me to avoid making the quarterly payments once more.

I wrote a similar thread over on "Household Finance" and will try to post a link to that, if you'd like more info ... or you can contact me .. or ask the Canada Revenue Agency.

Good wishes for the rest of the week.

ole joyful

Here is a link that might be useful: Some Canadians may defer current income tax payment

Comments (5)

Bull Run Kitchen and Bath
Average rating: 4.9 out of 5 stars220 Reviews
Loudoun County's Expert Kitchen & Bath Renovation Firm | Best of Houzz