Remittance and Filing Thresholds for Individuals

1. What is the instalment threshold for individuals?
2. What is the existing instalment threshold for individuals?
3. What is the new instalment threshold for individuals announced in the 2007 Budget?
4. Why is the instalment threshold different for individuals resident in Quebec?
5. How will individuals know what their instalment payments are?
6. Are deadlines for instalment payments affected by the Budget 2007 announcement?

Q.1 What is the instalment threshold for individuals?

A.1 The instalment threshold is the amount of net taxes owing in a year over which an individual will be required to pay tax by instalments in future years.

Q.2 What is the existing instalment threshold for individuals?

A.2 The current instalment threshold for individuals is $2,000, except for residents of Quebec, where the threshold is $1,200.

Q.3 What is the new instalment threshold for individuals announced in the 2007 Budget?

A.3 The 2007 Budget proposes that the instalment threshold for individuals be increased to $3,000 ($1,800 in Quebec).

Q.4 Why is the instalment threshold different for individuals resident in Quebec?

A.4 In Quebec, the Canada Revenue Agency (CRA) is responsible for collecting only federal taxes. Therefore, taxes owed to the CRA are normally less for a Quebec resident than they would be for an individual with the same situation but living in another province, where provincial taxes are also collected by the CRA. (The provincial portion of an individual's income taxes in Quebec is collected directly by the Ministère du revenu du Québec.)

Q.5 How will individuals know what their instalment payments are?

A.5 The Canada Revenue Agency will continue to notify individuals of their payment requirements, as determined on the basis of available tax information.

Q.6 Are deadlines for instalment payments affected by the Budget 2007 announcement?

A.6 No. The quarterly instalment deadlines for individuals are unchanged.