Line 476 - Tax paid by instalments

Instalments are periodic income tax payments that individuals have to pay to the Canada Revenue Agency on certain dates, to cover tax that they would otherwise have to pay in a lump sum on April 30 of the following year. Instalments are not paid in advance; they are paid throughout the calendar year in which you are earning the taxable income.

You have to pay tax by instalments for the same reason that most people have tax withheld from their income throughout the year. If you earn income that has no tax withheld or does not have enough tax withheld for more than one year, you may have to pay tax by instalments.

This can happen if you earn:

• rental income;
• investment income;
• self-employment income;
• certain pension payments; or
• income from more than one job.

Completing your tax return

Enter on line 476 of your income tax and benefit return the total instalment payments you made for your taxes for the year.

In February, we will issue you Form INNS1, Instalment Reminder, or Form INNS2, Instalment Payment Summary, which shows your total instalment payments for the previous year that we have on record. Visit My Account to see your instalment account. If you made an instalment payment for your taxes for the previous year that does not appear on this reminder or summary, also include that amount on line 476.

Note
If tax was withheld from your income, claim the amounts shown on your information slips (on line 437).

Forms and publications

• General Income Tax and Benefit Guide
• Pamphlet 110, Paying Your Income Tax by Instalments

Related topics

• Paying your income tax by instalments