Tidbits outside Tax Time

I like to teach. I try to present information in manageable pieces. Today, I am teaching about Notice of Assessment and Instalments.

Do you know what a Notice of Assessment is? How do you get yours? The NOA is a tool. Why? There's income information, RRSP information, carry forward amounts, explanations of differences, and it is a vital tool for any FINANCING you may do. Get it by postmail or in My Account, but take some time to look at yours. Email me if you find out something you didn’t know before!

Instalments are prepayments of income tax. They are CRA’s suggestion, relative to your last 2 years of taxes. If you owe more than $3000 2 years in a row, you will be asked to start prepaying your income taxes. There are 4 quarterly payments per year. Notices for the amount due come in February and August. If you know your tax due will change, you can choose to pay less than is asked. If you do not pay them, but were asked to, and owe the assumed amount or more, you will be charged late fees and interest. How do I avoid them? You have to have more tax deducted at source, or reduce your income.

One more thing. If you have CRA My Account, great. Use it. Don’t ignore emails from CRA, telling you you have new mail. Many frustrated clients forget to check their mail, until they are surprised with money due.