Tax season can be an eagerly anticipated time, as many individuals and families eagerly await their tax refunds. However, it can be incredibly frustrating when that refund is delayed, leaving taxpayers wondering why it’s taking so long.
A tax return is a form filed with the Canada Revenue Agency to calculate how much tax you or your business owes for each tax year. Whatever information you fill in on that form determines if you owe taxes, how much, or if you’ve paid more than you should.
If the Canada Revenue Agency collects more income tax from you than you owe, you’ll receive the excess amount back as a refund. This refund amount is calculated based on your total income, taxes you paid during the year, and if you have enough deductions and other credits to warrant a refund.
When Will I Get My Tax Refund in Canada?
When you file, determines when you get your refund. Each tax season begins with the New Year and you have until April 30 to do your filing. The earlier you file your taxes, the earlier you’ll get your return because the CRA processes tax filings on a first-come, first-serve basis.
If you file your taxes online, the CRA may send your refund within 2 weeks, and it could take as much as 8 weeks for the CRA to send your refund when you file a paper return. However, refunds may take up to 16 weeks if you live outside Canada and file a non-resident personal income tax return.
If your returns are not coming through during these timelines, then it means the CRA is taking longer to process your return because it has been selected for a more detailed review. Want your returns faster? Then you can set up a direct deposit payment with the CRA.
Feel free to see estimated times and check your tax refund status here with CRA’s tool.
Why Haven’t I Received My Refund?
Wondering why it’s taking so long to get your returns from the CRA? Did you submit your tax returns on or before their due dates and you’re yet to receive your returns after the estimated CRA processing times? Did you get only a part of your expected refund?
The CRA may keep all or part of your refund if you:
- Owe or are about to owe an amount
- Have a garnishment order under the Family Orders and Agreements Enforcement Assistance Act
- Have certain other outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance, and social assistance benefit overpayments, immigration loans, or training allowance overpayments
- Have any outstanding GST/HST returns from a sole proprietorship or partnership
- Have a refund of $2 or less
Also, your returns might be late due to:
- Change in contact information
- Missing documents or incorrect information
- Return errors on your part (like misreporting income or expenses)
- Outstanding debt (like student loans or employment insurance)
- Overpayments
You can check this list for more information on those circumstances. If you haven’t received a refund , and None of the above situations apply to you, you have 90 days after you receive your notice of assessment to dispute it formally.
If you reside in Canada, wait 8 weeks before contacting the CRA for update on your tax return and refund status. If you reside outside of Canada, wait 16 weeks.
How Do I Check The Status of My Refund?
There are 3 major ways to check the status of your income tax refund.
- You can easily sign into My Account to check the status of your tax refund. My Account gives you secure online access to your tax return information.
- Alternatively, you can use the MyCRA App.
- Do you know you can check your refund status by phone? It’s as easy as dialing the automated telephone number: 1-800-959-1956 any time of the day.
- You’ll have to verify your identity by using your Social Insurance Number, full name, date of birth, complete address, and line 15000 from your most recent assessment. It’s best to call the CRA in the early mornings or late There you have it! afternoons; avoid calling during lunchtime to avoid lengthy phone wait time.
Now that you know, put these to work today and enjoy some sigh of tax relief! Also don’t forget to reach out to EMCA and get professional advisory services for your tax filing and refunds.