Farming and fishing - Instalments

You have to make one instalment payment by December 31, 2012, if:

• your main source of income in 2012 is self-employment income from farming or fishing; and
• in each of 2010, 2011, and 2012, your net tax owing is more than $3,000.

Quebec resident - If you live in Quebec on December 31 of a year, use a limit of $1,800 instead of $3,000 for that year.

At the end of November, we send instalment reminders to farmers and fishers who may have to pay tax by instalment. The no-calculation amount is equal to two-thirds of the total of your prior-year (2011) net tax owing plus any Canada Pension Plan (CPP) contributions payable and any voluntary EI premiums payable. Even if we send you an instalment reminder in 2012, you do not have to make an instalment payment for 2012 if your net tax owing for 2012 will be $3,000 or less ($1,800 or less for residents of Quebec).

If your 2012 income, deductions, and credits will be significantly different from the prior year, it may be better to calculate your instalment payment using the current-year option. If you choose this option, you have to calculate your instalment payments based on your estimated 2012 net tax owing and any CPP contributions payable and any voluntary EI premiums payable. Use the Calculation chart for instalment payments to help you calculate your total instalment amount due and pay two-thirds of this amount by December 31, 2012.

Forms and publications

• Guide T4003, Farming Income
• Guide T4004, Fishing Income
• Pamphlet P110, Paying Your Income Tax by Instalments

Related Topics

• Do you want to reduce or elimate the amount of instalment payments you have to make?
• How and where do you make your instalment payments?
• Completing your tax return
• Interest and penalty charges