Mastering the Art of Paying Your Taxes
Now it’s not a topic that elicits excitement but is undeniably important: paying our CRA bills. While it’s tempting to avoid this task because of a multitude of reasons (cue some anxiety with a dash of procrastination) – it’s something we all need to know how to do.
Ultimately we all want to avoid the taxman’s wrath. The CRA can be like a sleeping dragon—poke it, and it’ll breathe fire. By paying your taxes promptly, you can avoid unnecessary penalties and interest charges
(check out our blog post on those nasty items).
Our taxes help fund essential services like healthcare, education, and infrastructure. Also, by settling your CRA bills, you can enjoy a peaceful slumber knowing that you don’t have to worry about that sleeping dragon.
So what are some tips on making the process slightly more enjoyable than a root canal?
Prioritize Timely Payments:
When it comes to taxes, procrastination is not your friend. Paying your CRA bills promptly is essential to avoid penalties and interest charges that can quickly accumulate. By tackling this responsibility head-on, you can prevent unnecessary financial strain and keep your accounts in good standing.
Budget and Plan Ahead:
Preparing for tax payments requires a strategic approach. Take the time to assess your financial situation and estimate your tax liability well in advance. By budgeting for your tax obligations throughout the year, you can set aside funds and prevent any last-minute scramble when the tax deadline looms.
Explore Online Payment Options:
Gone are the days of standing in long queues at the bank. Embrace the convenience of online payment options available to you. The CRA website offers a range of secure and user-friendly electronic payment methods. From direct debit to online banking, these options simplify the payment process and save you valuable time.
We find one of the easiest ways to do so is to utilize the options set up for both Personal and Business Tax at this CRA payment link: https://apps.cra-arc.gc.ca/ebci/fppp/mypymnt/pub/ntr.action?request_locale=en_CA
And if you’re not comfortable with that option, check out the full overview of all CRA payment options: https://www.canada.ca/en/revenue-agency/services/payments-cra.html
Consider Installment Payments:
For some individuals, tax bills can be substantial and difficult to pay in one lump sum. In such cases, the CRA offers installment payment plans. This option allows you to spread your tax payments over a designated period, making them more manageable and less burdensome on your finances.
Seek Professional Advice:
Tax matters can be complex, and seeking professional advice can help you navigate through the intricacies. An experienced accountant or tax professional can provide valuable insights, help you optimize deductions and credits, and ensure you meet your obligations correctly. Remember, investing in professional assistance can save you both time and potential headaches down the line.
In conclusion, paying your CRA bills is a responsibility that shouldn’t be overlooked. By adopting practical strategies such as timely payments, budgeting, and exploring online options, you can simplify the process and maintain your financial well-being.