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One of the biggest factors in the time frames it takes taxpayers to receive your tax return payments from the federal government is how it is filed. Those who file online will get their return faster than those who file by mail. Usually, it takes two weeks to receive a refund that was filed online and 8 weeks for one that was filed via mail.
The Longest Refund Wait Time
When it comes to waiting for your tax refund money, generally, the longest that you need to wait for your lump sum is 8 weeks. However, that’s just an approximation. There are times when it can take much longer in order to receive your tax refund. In these cases, the length of time is unique to your individual tax situation.
The Shortest Refund Wait Time
While the standard time to receive your refund is two weeks, it has been known to be faster than that. This is especially true for those who have direct deposit set up. For some, it can be as fast as a few days, depending on which financial institutions you bank with.
Receiving a Refund Via Direct Deposit
Having a direct deposit set up is the fastest method to receive your direct deposit. Depending on your tax return and when you file, you can receive it in just a few days. You don’t have to worry about a cheque being lost in the mail or having it deposited by someone else. It’s simple to set up and manage, and it allows you to keep track of when your amounts are deposited.
Get Tax Refunds From Previous Years
Receiving tax refunds from previous years is very similar to receiving one for the same year. No matter when you file the return, it has to be processed before the funds can be sent to you. However, because it’s an older return, it may take longer for them to process, resulting in a delay in receiving your refund. That said, you do have to file within 3 years. You can amend tax returns up to 10 years in the past.
Having tax refunds from previous years can also take longer than having an owed balance as well as having a refund. In a case like this, interest will have to be calculated on the taxes owed according to current tax rates, which can also increase your wait time.
Reasons A Tax Refund Can Take So Long
Most tax refunds are pretty straightforward and don’t take too long to receive. That said, there are situations where refunds can take longer. The first instance is when a mistake is made. Whether this mistake is your fault or not, it can take some time to correct it, which can cause a delay in the processing of a refund.
Another instance in which a tax refund can be delayed is when you have a balance owed to the Canada Revenue Agency. If this balance isn’t paid, then it will be deducted from your refund before it is processed. In some cases, the payment of the balance owed isn’t processed before the tax refund, and adjustments have to be made to make sure the numbers are accurate.
How Long After Your NOA You Receive A Refund
After you file your annual income tax return, you’re going to receive a NOA, which is also referred to as a Notice of Assessment and is essentially a receipt. If you’re receiving your refund via cheque, then it will arrive and be attached to your Notice of Assessment, which shows you a breakdown of your annual taxable income. If you’re signed up for direct deposit, then your refund will be deposited into your bank account on the day that the Notice of Assessment is processed. The only exception to this is when your account has extenuating circumstances related to your refund.
Tax Refund Timeline for Tourists
In order to get a tax refund in Canada, you have to either be a Canadian Resident or a Canadian Resident for tax purposes. This means that you keep residential ties while travelling outside of Canada or living outside of the country. You can also be considered a Canadian Resident for tax purposes if you spend more than 183 days or more per year in the country.
Tourists to Canada can’t just get a tax refund. You have to be living or earning income in Canada in order to file taxes. For this to happen, you would have had to file paperwork with the CRA and receive a Social Insurance Number.
The Maximum Refund You Can Get in Canada
Due to the fact that an income tax refund is based on how much you earn versus how much tax you owe, there’s no limit as to how much you can receive. These amounts are individual to you and can be increased when you claim your eligible tax credits and tax deductions. Many of these can’t be claimed until you file your annual income tax return, which is part of the reason that you end up receiving a refund.
The Tax Refund You Get With $30,000 As Your Annual Income
With an annual income of $30,000, it’s difficult to determine what your income tax return would be if you have one at all. This is because more than your total income is a factor in determining if you have a tax refund. This amount is based on how much you owe in taxes versus how much you paid. If you overpaid how much you owe in taxes, then you’ll be receiving a refund. The amount that you receive is going to be individual to you and your personal finance situation.
What You Need To File Your Annual Income Tax Return
The documents that you need in order to file your taxes are based on your individual income. For someone who owns a business, you will need to collect all relevant documentation for the income that you earned, as well as what eligible expenses you’re able to deduct. Those who have an employer will need to ensure that you have your T4 in order to claim your income.
Once you have your required working income documentation, it’s also important to ensure that you collect any documentation for any other income you receive, as well as documentation for deductible expenses. These can be employment expenses you were required to pay, RRSP documents, FHSA documents, or anything else you can use to reduce the income tax that you pay.
Once you’ve gathered all of the required documentation that you need to file, you can do so using tax software or a tax professional. However, each does come with a cost. Either one of these methods will also compile all of your documentation to determine your eligibility for a tax refund, if you have an outstanding balance, or if everything was correct. Once this documentation has been filed, the next steps are based on the findings. If you are eligible for a refund, then you just need to wait to receive it. You can then choose to spend this money, use it as an investment or pay a debt.
How To Find Out Your Refund Status
If you find yourself waiting an extreme amount of time for your tax return, then it’s not unreasonable to try to determine your refund status. You can do so in one of two ways. If you’re signed up for a My CRA Account, then you can sign in and see if there’s a refund status update. If you don’t have access to this or are unable to find the information that you’re looking for, then another great option is to call the CRA directly and request an estimate. They’re normally able to tell you what is delaying the refund process and when you should expect your refund to be processed.
Final Thoughts
Many Canadians normally receive a tax refund every year. For a basic tax return, it is common and is usually delivered in a timely manner. That said, not everyone has a standard tax return to file. The more complex that it is, the more difficult it can be to determine what your refund is and if it’s correct. In cases like this, it’s not uncommon for it to take a long time to receive your refund.
Setting yourself up for direct deposit with the Canada Revenue Agency is one way to ensure that you’ll receive your refund in a more timely manner. Another way is to file your annual income tax and benefit return before the deadline. If you do both of these things, it’s more likely that you’ll receive your refund sooner than the 2 - 8-week timeline.
