Xref: utzoo ont.general:1011 can.general:1632 Path: utzoo!attcan!utgpu!jarvis.csri.toronto.edu!neat.cs.toronto.edu!cebly From: cebly@ai.toronto.edu (Craig Boutilier) Newsgroups: ont.general,can.general Subject: Re: The Taxman Cometh for NSERC Award Recipients Keywords: Taxes, installment, Make the poor pay! Message-ID: <89Aug26.120314edt.10641@neat.cs.toronto.edu> Date: 26 Aug 89 16:04:11 GMT References: <1989Aug24.111357.26686@jarvis.csri.toronto.edu> <6258@watdcsu.waterloo.edu> Distribution: can Organization: Department of Computer Science, University of Toronto Lines: 35 In article <6258@watdcsu.waterloo.edu> djohnson@watdcsu.waterloo.edu ( DOUG JOHNSON - GEOGRAPHY ) writes: >In article <1989Aug24.111357.26686@jarvis.csri.toronto.edu> elf@dgp.toronto.edu (Eugene Fiume) writes (re scholarship income): >>Also, you're supposed to pay tax by quarterly installments. I never >>did this, and was sometimes charged interest. I think they now have >>their act together and are pretty insistent about charging interest. > >Ha. Tell me about it. (For more details, e-mail me). >Tax installments are required if 1) your net federal tax payable is >> 1000 $, 2) more than 25 % of your income has no tax taken off at source, >and 3) this is your second year of meeting the requirments re 1 & 2. Well, I've got some good news for NSERC holders: condition 3) above isn't exactly correct. You have to pay via installments only if you meet conditions one and two in both the previous AND the current tax year. Furthermore, you need only use installments if this is NOT the first year you are "required" to pay in installments. E.g. IF your net federal tax for 1988 was >$1000, and is projected for that much in 1989, then you are required to pay in installments. However, if 1987 was > $1000, but 1988 was not, then installments aren't applicable. AND the first time you meet such conditions, no interest is charged on late payments (i.e. you really don't need to pay installments at all). To avoid meeting the requirement any time during the NSERC tenure period, one might consider the following: On alternate years, request your 2ND NSERC cheque BEFORE Jan.1, and request it after Jan.1 during other years. This *may* prevent you from ever meeting conditions 1) and 2) in consecutive years. I haven't investigated how this affects the actual tax paid (since this first happened to me inadvertently, so I had no choice). But starting my 4th NSERC year, I've yet to pay any tax through installments (or be charged interest because of it). Craig