2016-11-24 00:00:00TaxesEnglishRead about the importance of manually reviewing your quarterly income tax payments. Review the difference between estimated and actual tax...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Self-Employed-Designer-Reviews-Quarterly-Income-Tax-Payment-Due.jpghttps://quickbooks.intuit.com/ca/resources/taxes/manually-review-tax-payments/Manually Review Tax Payments

Manually Review Tax Payments

0 min read

If you are self-employed and anticipate owing income tax to the Canada Revenue Agency, you must submit quarterly income tax payments. The CRA should send you a reminder so you know how much to pay. You can pay the amount shown in box 2 of your reminder. However, that amount is based on your income tax owed over the last two years; it does not reflect your current earnings.

To ensure you are paying enough tax and to avoid a large bill at tax time, you may want to calculate your business tax liability every quarter. Take your revenue and expenses into account, and then remit the income tax you owe based on your quarterly profits.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

One Step Over the Line: The Risks of Aggressive Tax Planning

Everyone wants to save money on their taxes, and it’s good to…

Read more

Using QuickBooks Tax

QuickBooks Tax Resource Centre   QuickBooks Tax is a cloud-based professional tax…

Read more

Should you Be Making Tax Instalment Payments?

Contrary to salaried employees, as an independent contractor, you do not have…

Read more