The following instructions are taken from the form.
General information
Instalment payments are remittances made by an individual on a quarterly basis to cover a portion of the income tax for the current year, contributions to the Québec Pension Plan (QPP) and the health services fund, and premiums payable under the Québec prescription drug insurance plan and the Québec parental insurance plan (QPIP).
As a rule, we inform the individuals concerned of the amounts they must pay by sending them form TPZ-1026.A-V, Instalment Payments Made by an Individual. If you do not receive the form, it is your responsibility to determine if you are required to make instalment payments. Use form TP‑1026-V (this form) or contact us to do so.
You may decide to reduce the amount of your payments if, in calculating your instalment payments, we used an amount greater than the amount of your income tax payable for 2021 (recalculated using the estimated amount of your refundable tax credits for 2022) or the amount of your estimated income tax payable for 2022.
Important
If you calculate your instalment payments yourself and they turn out to
be deficient, you may have to pay interest.
Calculation methods
To calculate your instalment payments yourself, complete this form using one of the following methods:
Previous-year (2021) method
Under this method, you calculate your instalment payments for 2022 on the basis of your data for 2021. However, you must use estimated data for 2022 to calculate your refundable tax credits.
Current-year (2022) method
Under this method, you calculate your instalment payments for 2022 on the basis of your estimated income, deductions, non-refundable tax credits, income tax, source deductions and refundable tax credits. To do the calculations, use a copy of the 2021 income tax return.
Terms
If your principal source of income is neither farming nor fishing
You must make instalment payments if you estimate that your net income tax payable for 2022 will be greater than $1,800 and your net income tax payable was greater than $1,800 for either 2021 or 2020.
If your principal source of income is farming or fishing
You must make instalment payments if you estimate that your net income tax payable for 2022 will be greater than $1,800 and your net income tax payable was greater than $1,800 for both 2020 and 2021.
Your net income tax payable is your income tax payable for the year minus the total, for the same year, of the income tax withheld at source and your refundable tax credits. In calculating your net income tax payable, do not take into account:
-
the amount of retirement income transferred between spouses that was included or deducted in the calculation of your income;
- the transfer of income tax withheld from retirement income transferred between spouses;
- the QST rebate for employees and partners;
- the property tax refund for forest producers; or
- the grant for seniors to offset a municipal tax increase.
Due dates
If your principal source of income is neither farming nor fishing
Your instalment payments must be made four times a year, by March 15, June 15, September 15 and December 15. In February and August, we will send you form TPZ‑1026.A-V to inform you of the amount of each payment you must make. We will calculate for you the amount of your first two payments for 2022 based on your 2020 income tax return, and the amount of your last two payments for 2022 based on your 2021 income tax return.
If your principal source of income is farming or fishing
Your instalment payments must be made in one single payment by December 31, 2022. In November, we will send you form TPZ-1026.A-V, indicating the amount of your payment. The amount will be based on your 2021 income tax return.
Interest charges
We charge interest, capitalized daily, on any payment (or portion thereof) not made by the due date. Furthermore, if the amount paid is less than 75% of the required payment, we charge additional interest of 10% per year, capitalized daily, on the payment (or the portion thereof) not made by the due date.
Important
If you make the instalment payments we indicated on form TPZ-1026.A-V by
the due dates, no interest will be charged even if the total of your payments
turns out to be less than your income tax payable for the year.