This article will address a common question among the taxpayers in Canada during the tax season: how long after NETFILE will it take to get a refund? You may have noticed that the wait time varies, but this is because of several factors, which we will go over.
We’ll also share how to track the progress of your refund after you’ve submitted your return. So, if you want to get your money back, keep reading!
When Can You Expect Your Tax Return After NETFILE?
What happens next after you file your tax return? Once you have completed your tax return, the Canada Revenue Agency (CRA) will review the income tax information you provided and confirm the figures are correct. Later, your CRA refund status will be determined.
How Long Does it Take For the CRA to Issue Your Tax Refund After NETFILE?
The CRA would send you a NETFILE Confirmation Number after performing an initial check on your return and approving it for processing via NETFILE. Most of the time, this takes only a few seconds.
If you file online, your refund is usually sent within two weeks, and it takes eight weeks if you file on paper, as long as you file on time and provide accurate information.
In Which Cases Can the Refund Take Longer/Faster?
CRA tax refunds may be delayed, particularly in the case of COVID-19.
In addition, if you live outside of Canada and file a non-resident personal income tax return, your return could take up to 16 weeks.
Returns that contain errors, lack information, require specialized processing, or require additional review may take longer to process.
However, if the process goes smoothly, you will receive your refund faster with direct deposit, in as little as two weeks.
You might want to read: What Happens If You File Your Taxes Late in Canada?
How to Check Your Refund Status?
The CRA provides several options for checking the status of a tax return in Canada (individual and business).
Residents of Canada should wait 8 weeks before contacting the Canada Revenue Agency for an update on their income tax refund status. If you live outside of Canada, you should wait 16 weeks.
After you’ve checked the CRA processing times, you can check the status of your refund in the following ways:
First, let us look at how to check your tax return online.
For the status of your individual tax refund, simply sign in to My Account on CRA. Individuals can also check refund status online by downloading the CRA mobile app MyCRA.
Business owners should login to My Business Account to access their GST/HST, view expected and filed income tax returns. This account is also used to access tax information on behalf of individuals and businesses, including your employer, through the Represent a Client option.
Another excellent mobile app is Business Tax Reminders, which allows businesses to create custom reminders and alerts for key due dates such as instalment payments, tax returns, and remittances.
Call the Tax Information Phone Service (TIPS) line at 1-800-959-1956 for Telerefund, a service that enables you to access the status of your tax return, calculate your approximate refund amount, and find out when you can expect to receive it. Check that you have the following information to verify your identity:
- Social insurance number (or business number)
- Full name and date of birth (or business name)
- Complete address (or complete business address)
- Personal (or business) account open or an assessed return, notice of assessment, reassessment, or other tax document
The phone number 613-940-8495 should be used by those who live outside of Canada and the United States.
Why Haven’t You Received Your Refund?
If you owe or will soon owe a balance, have a garnishment order under the Family Orders and Agreements Enforcement Assistance Act, or have a balance owing with the CRA for your income tax or benefit accounts, including the GST/HST credit and the Canada child benefit, the CRA may withhold some or all of your refund.
This also applies to any other outstanding federal, provincial, or territorial government debts, such as student loans or overpayments on employment insurance, and if you are entitled to a refund of less than $2.
In any case, your notice of assessment will clearly state whether a portion of your refund was forwarded to another account.
Can You Receive Interest on Your Refund?
In 2021, the CRA will reimburse you for daily compound interest on your individual tax refund. The calculation began on the most recent of the following three dates: May 31, 2022, the 31st day after you filed your return or the day after you overpaid your taxes.
For businesses, the CRA gets to pay refund interest beginning: the date of the overpayment, the 120th day after the end of the tax year if the return is filed on time, or the 30th day after the date the return was filed if it is filed late.
In both cases, the interest rate is determined following the prescribed interest rate.
Can You Transfer Your Refund?
When filing an income tax return, corporations may request to transfer an overpayment. The residual overpayment will be applied to any outstanding debt(s) on the corporation’s account, followed by any debt(s) on a related business number account.
Any remaining funds will be transferred to the next year’s instalment account, along with any applicable refund interest. And if the returns are not filed on time, the CRA will not transfer the overpayment to a related business number account.
If an individual requests a refund transfer to an instalment account, the CRA will transfer the entire refund. It will be applied to any outstanding balance on the individual’s tax return. The CRA will not transfer the refund to pay another person’s debt.
Except for the province of Quebec, the Canada Revenue Agency (CRA) collects and administers individual income taxes on behalf of provincial and territorial governments.
This is important because only Quebec residents can transfer refunds to their spouses. Visit Revenu Québec’s website for more information.
So, what did we learn? With only two weeks to wait, NETFILE is the best way to get your tax refund as soon as possible. It’s quick, simple, and secure. You can be confident that your information is secure with the Canada Revenue Agency and that you will receive your tax refund as soon as possible.
Just make sure you have all of your information ready before you file – it can take as little as 15 minutes to complete your return.
Individuals can expect the Notice of Assessment 2 weeks after filing online, 8 weeks after filing on paper, up to 16 weeks for non-residents. It takes 6 weeks after filing digital corporation income tax returns for businesses.
That only depends on when you file your income tax return and whether you use NETFILE or paper. You should be especially cautious not to file it after the deadline.
Your return will arrive in around 4-6 weeks if you filed by mail.