Income Tax Quarterly Installment Payments
I have filed my taxes this year and have mailed the Receiver General a cheque dated April 30, 2010. Due to my business income my tax liability was in excess of $3,000. I am not complaining as I was able to use the government's money for the whole year, but nautrally they don't like this. Like everyone else, if you owe them money the sooner they get it the better.
If I have to send them in excess of $3000 again for the 2010 tax year they will ask me to pay my taxes in quarterly installments. My business income is sporatic so I do not want this to happen. This was an easy fix. I simply supplied my employer with a requesting more tax be taken off of my cheque. Although I will get paid less every month, I will not have the same tax liability in the spring of 2011.
If you work a part time job you may want to consider doing the same. Your part time employer will only be considering your part time income when they take tax off of your cheques. This will likely require you to pay taxes the following spring.
If you want to read more about quarterly installments check out this from the C.C.R.A.
