EllenInEdmonton Apr 24, 2023
So, taxes are filed for the year.
Now, I just need to pay them off over the next year, hoping that they don't request the whole amount at once. Hopefully, I'm getting adequate deductions for the rest of 2023!
Show threadKint ðŸ¤˜ðŸ’€Apr 24, 2023

@EllenInEdmonton The CRA will let you setup a payment plan

https://www.canada.ca/en/revenue-agency/services/payments-cra/payment-arrangements.html

Arrange to pay your personal debt over time - Payments to the CRA - Canada.ca

Set up a payment arrangement with the CRA and calculate an amount you can afford to pay in several payments over a period of time.

Show threadEllenInEdmonton Apr 24, 2023
@kint Ooh, thanks!! I like that this is more orderly.
Show threadEllenInEdmonton Apr 24, 2023
@kint
It looks like everything is organized for my automated payments. It says that they can still demand immediate payment but when I spoke to Money Mentors, they figured that CRA would accept regular payments and charge a lower rate of interest than the bank. Thanks very much for directing me to the right page online.
Show threadHerMammaApr 24, 2023

@EllenInEdmonton

Their interest rates are here: https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates/2023-q2.html

They change every quarter.

And if they do contact you (and it won’t be until after the strike!) it’s unlikely they’ll demand full payment. BUT once you are on an official payment plan don’t miss a single payment without calling them to make arrangements first. They can garnishee your pay or even scoop your bank account! (Though in 25 years I haven’t seen them go that far if you’re making a good faith effort)

Interest rates for the second calendar quarter - Canada.ca

Show threadEllenInEdmonton 
@HerMamma
Thanks! I'm not in the habit of missing payments so it should all be good.
If anyone out there in Mastodon land is nearing #retirement, I'd advise you to set up tax payments in advance for any of your income streams. This is the second year in a row with a big tax hit and now, it means that I'm paying both of those years AS WELL AS paying extra for this year. That's unfun. I'm very much in favour of paying taxes just not in giant lump sums when my income is already reduced!
Apr 24, 2023 at 3:27amWeb
Show threadHerMammaApr 24, 2023

@EllenInEdmonton and for others: as you enter #retirement don’t listen when the bank says the 10% they take off your #RRIF is enough! It is NOT! I advise to start at 20% and adjust up or down the next year once you get a feel for it. If you’ve contributed too much you get the extra back as a nice surprise in April. Better that than the the other way.

I’m sorry your going through this transition in such a hard way :(

Show threadEllenInEdmonton Apr 24, 2023
@HerMamma Ah, it's not terrible but it would have been a lot nicer to have made the payments in advance, instead of all together like this. It doesn't help that I'd already committed to a US roadtrip this spring, without having noticed the significant changes in USD exchange rates. Still, I'll be car-camping and I'll be eligible for 1/2-price camping in National Parks. I need to do this now, while I have a functional vehicle as well as the wits and physical well-being to make it an option.