If your end-of-year payback obligation is $1,000 or greater, you must make interim payments in the next tax year.
The goal of the intermediate payments is to allow you to make student loan repayments throughout the year rather than just at the end. This makes student debt repayment more manageable. The interim payments you make will be applied to your end-of-year obligation.
Your annual interim assessment is equal to your previous year’s payback requirement plus 5%. If you have not submitted the previous year’s return by the time the interim payment is due, your interim assessment will be based on the payback requirement in the previous year plus 10%.
The majority of people’s interim payment dates will be August 28, January 15, and May 7, with any remaining debt due on February 7, the following year. If your fiscal year does not finish on March 31, please contact us to determine when your payments are due.
You can also pay your student loans voluntarily at any moment. This will also lower the amount you must pay at the end of the year.
Getting rid of your interim payments
The amount of your interim payments is determined by your revenue from the previous year. The larger the interim payments, the more you earn. If we inform you how much your interim payments will be, but you believe your income will be lower than the previous year, you can ask us to reduce the interim payments.
To do so, you must calculate your total adjusted net income for the year. This should be based on what you intend to earn, including other forms of income and modifications. If you plan to receive a salary or wages, you’ll need to estimate this as well.
If your estimated yearly income changes after you estimate it, you can re-estimate your interim assessment as many times as necessary until your final interim payment date.
It is critical that your estimate be correct. We may charge you a penalty if your estimate is less than what you need to pay.