Working on your taxes could be cumbersome. Many people consider it like an appointment with their dentist. However, dentist appointments can be delayed whereas tax filing cannot.
Canada Revenue Service has understood the struggles that people go through at the time of filing for their tax returns. That’s why they have taken appropriate measures to make the overall process less painful. One such step is mailing a Notice of Assessment to you after completing your tax filing.
What exactly is the Notice of Assessment?
In simple terms, Notice of Assessment is referring to the annual statement, which is sent to you by the Canada Revenue Agency. Everyone who files taxes will get a Notice of Assessment. Its almost like a receipt for filing your taxes.
In the Notice of Assessment, you will be able to see how much income tax you owe or how much your tax refund will be. Information about tax credits and saving plan limits are also available in the Notice of Assessment.
All information that you can find in the Notice of Assessment are determined based on information that you are submitting along with your tax return. It is possible for you to get the Notice of Assessment after a period of about two weeks of filing for taxes. However, this is only applicable to the people who filed for the taxes electronically. If you paper mailed your return, you will have to wait for a duration of up to 8 weeks in order to get the Notice of Assessment.
You cannot expect the Notice of Assessment to contain accurate information at all times. There are situations where you will be able to find inaccurate information in the Notice of Assessment. In such a situation, you will have to contact Canada Revenue Agency (CRA) to correct your Notice of Assessment. Your benefits and credits are based on the amounts reported in the Notice of Assessment. Hence its crucial to review your Notice of Assessment in a timely manner.
How long after Notice of Assessment do you get refund?
Now let’s come to the most important question. You got the Notice of Assessment and now you are wondering how long it would take to get your tax refund. Typically, your refund will be directly deposited or mailed in form of a cheque within two weeks of getting the Notice of Assessment. However, this timeline is applicable only if you filed for the tax return online. If you paper mailed your tax return, you will have to wait for a period of around 8 weeks.
It is also important to understand that these timelines would be applicable for the tax filings that are done within Canada. If you are a person who is living outside Canada, you will have to wait for a duration of up to 16 weeks to get the tax refund after the Notice of Assessment. A similar time duration will be taken for the people who are non-residents of Canada as well. If you wish to get additional information, you are encouraged to take a look at the website of Canada Revenue Agency. Then you will be able to clarify all the doubts that you have been dealing with.
Analyzing information on the Notice of Assessment:
Until you get the tax refund, you should carefully review your benefits, credits and carryforwards listed on your Notice of Assessment. Your benefits are based on your family income and information reported on your tax return. Tax credits are based on how much you have contributed in the RRSP contributions and withdrawals.
For example, if you have a Registered Retirement Savings Plan, the Notice of Assessment will be able to provide you with precise information about the maximum contributions that you can make towards the retirement savings plan in the following year. And in case if you took part in a Lifelong Learning Plan or Home Buyer’s Plan, but withdrew from the registered retirement plan, you can take a look at Notice of Assessment and understand when the future payments are due.
If you are still confused about any of the topics mentioned above, feel free to contact Taxants.ca. They will be able to help you with your questions and concerns about the Canadian tax filing rules and regulations.