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Taxes

Why Is My Tax Refund Lower Than Expected?

The most common reasons are that the CRA used part of your refund to pay a debt you owe (taxes, a benefit overpayment, or another government debt like a student loan or EI overpayment), or it changed your return, for example by disallowing a credit. Your notice of assessment explains exactly what happened.

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1. Your refund paid a debt

The CRA can keep all or part of a refund to pay amounts you owe: tax debts, benefit overpayments (such as Canada workers benefit advances), or other government debts like student loans and EI overpayments. CRA debts are settled first, then family support orders, then other programs.

2. The CRA changed your return

Check the "explanation of changes" on your notice of assessment. A credit or deduction may have been reduced or disallowed, for example if supporting documents weren't provided.

3. Less tax was withheld, or your situation changed

Your refund is the difference between the tax withheld during the year and the tax you actually owe. A raise, a second job, fewer credits or a change in deductions can all shrink it.

What to do

Open your notice of assessment in CRA My Account. If you think it's wrong, you can change your return.

Related

How to Check Your CRA Tax Refund Status Check your return status in CRA My Account (available even with limited access), or call the automated line at 1-800-959-8281, option 4, any day from 6 am to 3 am Eastern time. Refunds are issued after your return is processed: usually within 4 weeks if you filed online. CRA Notice of Assessment: Where to Find It and When It Arrives Your notice of assessment is available in CRA My Account once your return is processed. The CRA aims to process 95% of returns filed online within 4 weeks and paper returns within 8 weeks, when filed by the due date. You can view it even with limited access. How to Pay Back a CRA Benefit Overpayment (CCB, GST/HST Credit) If the CRA recalculates your benefits and finds you were overpaid, it sends a notice with a remittance voucher. Pay online through your bank using your SIN as the account number, let the CRA take it from future benefits or refunds, or call 1-888-863-8662 to set up a payment plan.

Frequently asked questions

How can I estimate my refund before filing?

Certified tax software calculates it as you fill in your return. Your result depends on all your slips, credits and deductions.

Sources

North Help Desk is an independent guide, not a government website. Rules, amounts and phone hours can change; always confirm on the official page before you act. Spotted something out of date? Tell us.