Instalments Flashcards
1
Q
Instalment threshold for individuals
A
$3,000 ($1,800 Quebec)
2
Q
When are instalments required for individuals?
A
If the tax owing (on income not subject to withholding) in the current year and in one of the two preceding years exceeds the threshold of $3,000 ($1,800 Quebec)
3
Q
Calculations for Instalments
A
Each instalment is computed as the least of:
- 1/4 of the estimated tax payable for the current year;
- 1/4 of tax payable for the immediately preceding year;
- 1/4 of tax payable for the second preceding year for the March and June instalments, and 1/2 of [the tax payable for the preceding tax year net of the March and June payments] for the Sept. and Dec. instalments