Installments are periodic payments of income tax that individuals pay to the CRA to cover tax they would otherwise have to pay on April 30 of the following year. These payments are credited to an installment account.
Typically, people pay their tax by having it withheld from their income throughout the year. However, if you receive income that has no tax, or not enough tax withheld, you might have to pay tax by installments. This can happen if you receive rental, investment, or self-employment income, certain pension payments, or income from more than one job.
Important: Instalment payments are not the same thing as payment arrangements. If you want to pay your balance owing in several payments instead of as a lump sum, visit the CRA page for more info on payment arrangements.
Follow the applicable steps below to enter instalment payments into TurboTax. First, fill out your personal information and build your tax profile to ensure optimal results.