Tax Payment and How to Pay Your TaxesBrian Jang ON February 3, 2017
Tax season is just around the corner. And even though April is still a few months away, it’s never too early to get a head start on filing your taxes. If you have already finished preparing your return and realize you owe the Canadian Revenue Agency (CRA), there are a number of tax payment solutions available to help make the process less painful.
How to pay your taxes
Now that you’ve got tax filing out of the way early this year, you won’t have to worry about missing the deadline (it’s on April 30, 2017, just in case you are wondering). All that’s left to do is figure out how to pay. Owing money to the CRA? Here are some great options to get the tax man off your back.
How to Pay the CRA online
Ben Franklin got it right when he coined the phrase, “Nothing is certain except for death and taxes.” But he may not have been so gloomy if he had the online payment options that we have today.
You already use online banking for your bills. Why not use it to pay your taxes? It’s quick, convenient, and best of all, easy to set up. Simply sign into your online banking account, select “Pay Bills,” and then add the CRA as a payee. You also have the choice of using your personal or business account to pay your taxes.
Don’t want the hassles of mailing in your return? Paying your taxes has never been easier with Interac Online. With just a swipe of your debit card, you can make direct payments to the CRA from your online personal or business banking account. You can use the CRA’s My Payment service option from many financial institutions, including CIBC, RBC Royal Bank, Scotiabank, BMO, and TD Canada Trust.
Another convenient way to pay your taxes is with a pre-authorized debit service option. Whether you want pay by installments or make a one lump sum, you can authorize the CRA to withdraw your payment(s) from your bank account automatically. When you create a pre-authorized debit, you’ll never have to worry about late payments again.
If you owe taxes this year, you can use your credit card. Although you can’t pay the CRA directly, you can use a third party provider like Plastiq to charge any personal income tax owing to your credit card. Keep in mind, however, you will be charged a processing fee each time you use the service.
Why do I owe taxes Canada?
Ready or not, tax season will be here before you know it. Whether you are a freelancer or your employer didn’t deduct enough income tax, you’re probably going to have to shell out some cash to the CRA. Taking the time now to properly prepare will help get your taxes in on time and avoid any unnecessary hassles down the road.
Looking for some help this tax season? Trust the professionals at BCJ Group for all your tax preparation needs.
To get the jump on filing your taxes early this year, contact BCJ, Chartered Professional Accountants today!