Paying your taxes quarterly isn't exactly a choice you can make; it is something that you must be considered eligible for and may have to do as instructed by the Canada Revenue Agency (CRA). Let us review the conditions required to pay in instalments:
There are two factors to help determine if you have to pay tax instalments.
1. Province or territory where you live
The province or territory where you live on December 31 determines your net tax owing for tax instalments.
For All Residents (Except Quebec)
If your net tax owing is more than $3,000
For Quebec Residents
If your net tax owing is more than $1,800
2. Net Tax Owing
You must pay your income tax by instalments for 2022 if both apply:
Net Tax Owing in 2022
If your net tax owing is more than $3,000 or $1,800 for Quebec.
Net Tax Owing in 2021 or 2020
If your net tax owing in either 2021 or 2020 is also more than $3,000 or $1,800 for Quebec.
The Canada Revenue Agency will send instalment reminders to people who will likely have to pay tax instalments. The reminders suggest the amount to pay and lists the calculation options.
The Canada Revenue Agency also provides a calculation chart for instalment payments for 2022 here:
Calculation Chart - Instalment Payments 2022
A note: TurboTax also provides these figures for you also.
For the complete answer and guidance to this question please Contact the Canada Revenue Agency.
Thank you for choosing TurboTax.
