Instalment Payment Options

Forum|Forum|5 years ago
April 27, 2021
1 reply
4 views

Why does Profile show that the instalment payment due date was March 15 of this year, when taxes haven't been filed yet? How do I explain this to my client?

ProFile (Canada)

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J

janisbossenberry

Level 7

If your client owed more than $3,000 in taxes in 2019 or 2018, they would have received an instalment reminder last year advising them of their March 2020 instalment required if they expect their 2020 taxes to exceed $3,000. When you look at the instalment schedule in Profile this year, you will see that it also provides the March 15th 2022 instalment amount. If they were previously not made aware of the requirement to pay an instalment on March 15th, then you can advise them to pay it as soon as possible, and then to pay the next one (June 15th) an equal number of days early. That is the only time that CRA will "pay" interest on instalment amounts - they will credit enough interest on an instalment paid early to offset the instalment interest which will be charged on the late payment.

C

ColleenWAuthor

Level 2

They didn't owe $3,000 in 2019 or 2018 so that's why this is throwing me for a loop.

J

janisbossenberry

Level 7

You could try changing the instalment payment options that you have selected in their file. Near the bottom of the "Instalments" screen, you have 5 options. Try selecting the one "quarterly based on 2019 and 2020 instalment base". If there was not over $3,000 owing in 2019, then it should calculate based on 2019 for the first 2 instalments (which would be zero) and based on2020 for the last 2 instalments.

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