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Haven’t Received Your Tax Refund? The CRA’s Debt Recovery Program Could Be the Reason

Mark Virgil Lofranco • 27 November 2024

Have you heard discussions about "the CRA debt recovery program" circulating on social media or in the news? In early April 2024, the Canada Revenue Agency (CRA) announced the resumption of its debt recovery efforts through a process called “offsetting.”



Offsetting occurs when the CRA applies your tax refunds and benefit payments toward outstanding government debts instead of issuing the refund directly to you. This practice was paused in 2020 due to the pandemic but resumed in 2023, leaving some Canadians frustrated as they discovered their expected tax refund might not arrive.


If you’ve filed your taxes and are worried about your refund, this article explains why the CRA might be holding it back, how to check the status of your tax refund, and what steps to take if the CRA notifies you that your refund is impacted.


What Is the CRA’s Refund Timeline?


The CRA has a typical timeline for processing refunds, usually aiming for:


  • 2 weeks for online returns
  • 8 weeks for paper returns
  • 16 weeks for non-resident returns


These timelines apply to returns submitted on or before the April 30 deadline. If you file late or your return is flagged for a detailed review, processing could take longer.


How Do I Check My Income Tax Refund Status?


You can check your refund status after waiting for the typical CRA processing times. Here's how:


  1. By phone: Call the CRA’s Contact Centre at 1-800-959-8281.
  2. Online: Log into your CRA My Account and check your Notice of Assessment.


Why Have I Not Received My Tax Refund?


The CRA might withhold your refund for several reasons, including:


  • Outstanding government debts like student loans or employment insurance overpayments.
  • Miscalculations corrected in your Notice of Assessment.
  • Outstanding tax returns from a sole proprietorship or partnership.


How Do I Resolve Issues With My Tax Refund Status?


If you disagree with your CRA Notice of Assessment, you can:


  1. Contact the CRA to understand the issue.
  2. File a formal objection within 90 days of the NOA, either online or by mail using form T400A, and provide supporting documentation for your claim.


How Do I Avoid Future CRA Refund Delays?


To avoid delays, be proactive by:


  • Filing online for faster processing.
  • Ensuring accuracy in your tax return.
  • Keeping your CRA information up-to-date, such as marital status and address.
  • Signing up for direct deposit to receive your refund more quickly.


By staying informed about the CRA’s debt recovery program and taking the right steps, you can manage your tax obligations efficiently and avoid surprises when it comes to your tax refund.


Key Takeaways

  • The CRA is using tax refunds to "offset" debts through its debt recovery program.
  • If you believe your refund is wrongly affected, you have 90 days to appeal your Notice of Assessment (NOA).
  • You’ll need to provide reasons and documentation to support your appeal if you disagree with the CRA's assessment.

Understanding the USA/Canada Tax Treaty

by Mark Virgil Lofranco • 9 December 2024
Are you a U.S. citizen living and working in Canada? Maybe you're a dual resident unsure of which tax rules to follow, or perhaps you cross the border daily to work for a Canadian company. Understanding the U.S./Canada Tax Treaty is essential for anyone earning cross-border income.  Filing taxes in just one country can be complex, and the U.S. tax system is one of the most complicated in the world. Figuring out taxes for both Canada and the U.S. can be challenging, but don’t worry, we’ve got answers. Here’s how your taxes work under the U.S./Canada tax agreement if you’re living or working in Canada and earning income.

9 Commonly Overlooked Tax Deductions for Startup Owners

by Mark Virgil Lofranco • 9 December 2024
Starting your own business is an exciting and rewarding journey, but with all the enthusiasm, some important financial details—like tax deductions—can be overlooked. As a new business owner, reducing your tax burden is crucial to maximizing profits, yet many Canadian small-business owners miss out on valuable tax deductions, paying up to 42% in taxes.  While you're likely familiar with common deductions like office supplies, meals, and wages, there are many lesser-known tax breaks that could save you money. Let’s dive into nine commonly missed tax deductions that could benefit your startup.

Methods to withdraw RESP

by Mark Virgil Lofranco • 9 December 2024
Navigating the financial landscape of your child’s education expenses, especially with rising inflation, can be challenging. Whether you're already contributing to a Registered Education Savings Plan (RESP) or considering opening one to fund your child’s post-secondary education, it’s essential to understand the rules and benefits associated with RESP withdrawals.  Here’s a comprehensive guide to help you make the most of your RESP in Canada.

Essential Tax Credits and Grants Every Small-Business Owner Should Be Aware Of

by Mark Virgil Lofranco • 9 December 2024
Did you know that public funding could help kickstart your business? While many entrepreneurs are familiar with startup loans, fewer know about the wealth of public funding options available—specifically, tax credits and grants. These financial resources can be game changers for launching and growing your business.  This article will guide you through various tax credits, grants, and other public funding options that can support your small business.

How to Handle Toronto's Inherent Property Tax Increase: Tax Advice for First-Time Buyers

by Mark Virgil Lofranco • 9 December 2024
Buying your first home in Canada is an exciting milestone. However, potential and current homeowners in Toronto should be aware of a major change on the horizon: a proposed 10.5% increase in residential property taxes, the largest since 1998. This hike, driven by a nearly $1.8B budget shortfall, includes a 1.5% increase dedicated to city-building projects, such as transit and housing. Homeowners could face an extra $26.75 per month, or $321 annually, in property taxes. City officials have also warned that without federal funding, property taxes could rise even further, up to 16.5%.

A CRA Business Number (BN): What Is It and Who Needs One?

by Mark Virgil Lofranco • 9 December 2024
Congratulations! Whether you’ve just become self-employed or started a side gig to earn extra income, you're on an exciting journey. Amid all the hustle, you might have come across something called a Business Number (BN). But what exactly is it, and do you need one? Let’s dive in and explore everything you need to know about registering for a BN as a self-employed person or small business owner.

2023 Canada Tax Checklist: Essential Documents You Need to File Your Taxes

by Mark Virgil Lofranco • 9 December 2024
Picture this: tax season is approaching, and you’re frantically trying to gather the documents you need, worried you might miss something important. Sound familiar? That’s why having a tax checklist is essential. It helps you stay organized and ensures you have everything you need to file smoothly.  In this article, we’ll cover all the documents you need to have handy when filing your taxes!

2024 Tax Deadline: When Is the Last Day to File Your Taxes?

by Mark Virgil Lofranco • 9 December 2024
As a taxpayer, one of the most critical aspects to stay on top of is the deadline for filing your taxes. The Canada Revenue Agency (CRA) enforces strict due dates for both returns and payments. Filing on time not only helps you avoid interest and penalties but also ensures you get your refund faster. We’ve compiled all the key tax dates you need to know for a stress-free tax season.

NETFILE Opening in Canada: When You Can Start Filing Your Taxes

by Mark Virgil Lofranco • 9 December 2024
The way we file taxes has evolved dramatically over the past two decades, making it faster and more efficient to submit your returns. With tools like NETFILE, the Canada Revenue Agency (CRA) offers taxpayers a quick and secure method to file returns online. This article explains when to file your taxes, key deadlines, how NETFILE works, and why it’s a great option for fast-tracking your tax return.

Missed the Tax Deadline? Here’s Why It’s Not Too Late to File

by Mark Virgil Lofranco • 9 December 2024
If you missed the tax filing deadline and are feeling anxious, take a deep breath—it’s more common than you think, and it’s not too late to take action!  You can still file your tax return even after the deadline, and this article will walk you through the process to help you file confidently and minimize any potential penalties.
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