Identify who owes the instalment
Personal, corporate and GST/HST instalments follow different rules. We begin with the taxpayer, program account and applicable period. A payment to one account should not be assumed to satisfy another account’s instalment.
For ordinary 2026 personal instalments, the CRA test considers net tax owing in 2026 and either 2025 or 2024. The usual threshold is more than $3,000, reduced to $1,800 for Québec residents. The calculation options and relevant contributions need review rather than applying the threshold to gross income.
A reminder and payment example
Assume a hypothetical Ottawa retiree’s reviewed CRA reminder calls for $1,600 on each remaining ordinary 2026 date. The payment register schedules $3,200 across September 15 and December 15, then records confirmations separately. An earlier payment is checked for its account and year before reducing either planned amount.
Keep the assumptions current
We assemble prior assessments, current income information, withholding and instalments already paid. A current-year estimate carries different risk from following a supported reminder option, especially when investment or business income changes. The chosen method and its rationale should be documented.
The owner or taxpayer approves payments through the agreed process. We retain references and compare account postings with the schedule. Corporate instalment frequency and eligibility are reviewed separately; a small company is not automatically entitled to quarterly instalments or a three-month balance deadline.
Questions about this work
Does an instalment reminder mean the calculation cannot change?
No. CRA provides calculation options, but reducing payments requires a supported review of the applicable rules and figures. Incorrect estimates can lead to charges.
Are instalments the same as last year’s balance?
No. Instalments generally relate to the current year’s tax. A prior-year balance and its payment should remain separately identifiable.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing documents, agree on the scope and organize the next tax preparation step.
Request a tax review