Paying your debt in full
If you can pay in full right away, there are three ways to do so: online, in person, or by mail.
Keep in mind; if you make a payment to the Canada Revenue Agency, allow for three business days for online payments to show on your account and ten business days for payments by cheque or money order.
Arranging to pay your debt over time
For those dealing with financial difficulties or bankruptcy in Canada, this tax payment plan is a popular choice. Instead of paying their entire CRA debt in full, arranging to pay in instalments is more manageable.
The CRA works with you to find the best way to pay your debt through a payment arrangement with these four steps:
- First, you will calculate your monthly income and expenses (here’s a worksheet to help you do just that)
- Next, you’ll determine how much you can afford to pay by entering the following in the payment arrangement calculator:
- your debt amount
- frequency of your payments
- amount per payment or the number of payments
- Then, you’ll contact the CRA to set up your payment arrangement by calling this number: 1-866-256-1147.
- Finally, you’re ready to start your payment arrangement! Your first step will be making your initial payment. Be sure to make payments on the dates in your payment arrangement and file all future tax returns on time.