# Paying taxes through online banking



## w0nger (Mar 15, 2010)

Hi folks, 

just wondering if someone here can help since it's the weekend. When paying taxes owed online through TDCanadatrust, there's two options when adding a payee:

CRA Personal Income Tax Balance Owing/Arrears for 2012 & Prior

CRA Personal Income Tax Payment When Filing for 2012

What's the difference? Which one do I choose? I can't seem to find any information on the CRA website... I have not yet filed my taxes as I have a small business.


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## Spudd (Oct 11, 2011)

The first one is for a return that was already filed and you're paying due to an adjustment or you didn't pay enough the first time. The 2nd one is for a normal filing.


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## w0nger (Mar 15, 2010)

Ah ok, so I should select the second one and make a payment to that "payee" at the same time that I file my taxes?

Then if I get a letter in the mail about any adjustments, then I would select the first one at that time and make the payment if require...?


Thanks!


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## MoneyGal (Apr 24, 2009)

Yes and Yes.


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## Guban (Jul 5, 2011)

w0nger said:


> Hi folks,
> 
> just wondering if someone here can help since it's the weekend. When paying taxes owed online through TDCanadatrust, there's two options when adding a payee:
> 
> ...


Surprised there are only two. My bank also shows an Instalment payment option (that I assume you don't want).


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## Retired Peasant (Apr 22, 2013)

Guban said:


> Surprised there are only two. My bank also shows an Instalment payment option (that I assume you don't want).


Actually TD does have that as well; when I went to pay that was my only option, so I paid through the revcan site instead.


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## w0nger (Mar 15, 2010)

installment was there too, but i had already eliminated that option


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## kcowan (Jul 1, 2010)

It is surprising to me the CRA keeps all these separate buckets, especially since they offer the conversion of any refund into an installment payment. Is it a scheme that enables them to continue to charge interest and penalties?


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## Retired Peasant (Apr 22, 2013)

It is surprising especially when stuff like this: http://canadianmoneyforum.com/showthread.php/15582-I-Was-Garnished-by-the-CRA-*After*-Paying-All-My-Taxes! happens.:distress:


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## MoneyGal (Apr 24, 2009)

kcowan said:


> It is surprising to me the CRA keeps all these separate buckets, especially since they offer the conversion of any refund into an installment payment. Is it a scheme that enables them to continue to charge interest and penalties?


I don't think so. These are distinct buckets and they need to know how to apply the payments that are deposited to them. A dollar has come in: is it for the payer's past liability, current liability, or future liability? These are all due at different times and I'm not sure why CRA should operate in a way that differs from other creditors!


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