Waiting for your tax refund can be frustrating, especially if you’re relying on that money to cover a large expense, pay down debt, or manage day-to-day bills. You file on time, expect everything to go smoothly, and then... nothing.
While most refunds in Canada are processed within a few weeks, unexpected delays can happen. In this article, we’ll break down the most common reasons tax returns get held up and what you can do about it.
Typical Timeframes for Tax Return Processing
How long it takes to get your tax return processed in Canada depends on how you file. If you file your return online (also known as e-filing), you can usually expect to hear back from the Canada Revenue Agency (CRA) within 8-10 days. If you file online and have direct deposit set up, you’ll also get a refund sooner.
If you mail in a paper tax return, it can take 8 weeks or more for the CRA to process it. But keep in mind that these are average timeframes. Several factors can impact how fast your return gets processed. For example, if you’re missing information, made a mistake, or your return is selected for review, it could take more time.
5 Common Reasons for Tax Return Delays
1. Errors or Omissions in the Tax Return
Small mistakes can lead to big delays. Common errors include entering the wrong Social Insurance Number (SIN), forgetting to sign a paper return, or listing incorrect amounts. Even something as simple as a wrong birth date can cause your return to be flagged.
2. Incomplete or Inaccurate Documentation
Missing or incorrect documents—like a forgotten T4 slip or a misreported T5 amount—can slow things down. The CRA compares your return with the information they get from employers and banks, so any mismatched details can delay your return.
3. Outstanding Debts or Obligations
If you owe money to the government, your refund won’t be processed as quickly, or you might not receive the full amount. The CRA can apply your refund toward unpaid tax balances, employment insurance overpayments, or student loan debt. Provincial debts, like unpaid child support or social assistance overpayments, may also lead to an automatic hold or redirection of your refund.
4. Manual Reviews or Audits by the CRA
Sometimes, the CRA selects returns for a closer look. This can be random, or it could be triggered by something unusual in your filing, such as large deductions, self-employment income, or changes from previous years. These manual reviews take extra time and may require you to submit additional documents.
5. Impact of External Factors
Delays can also be caused by factors outside your control. An example is the 2023 federal public service strike, which involved over 150,000 workers, including many at the CRA. During this period, CRA operations were significantly disrupted and processing times slowed. Natural disasters, system updates, or high-volume filing periods can also contribute to delays.
How to Check the Status of Your Tax Return
Using the CRA’s Online Services
The quickest way to check your tax return status is through the CRA’s My Account online portal. You can log in with a CRA user ID or through a sign-in partner, like your bank. If it’s your first time using the portal, you’ll need to register and wait for a security code by mail. Once logged in, you’ll see your return’s status under “Tax Returns”—whether it’s received, processing, or complete. You’ll also have the option to set up email notifications so you can be immediately alerted if the CRA needs more information or has updates about your return.
Contacting the CRA Directly
If you’d rather speak to someone or don’t have access to online services, you can call the CRA at 1-800-959-8281. When you call, be sure to have some personal information ready to confirm your identity such as your SIN, date of birth, and details from your last tax return. This helps the agent pull up your file quickly and give you the most accurate information about your return’s status.
Steps to Ensuring Timely Tax Refunds in the Future
Filing Electronically and Early
One of the best ways to avoid delays in getting your tax refund is to file your return online and to file early. E-filing is not only faster for processing, but it also reduces the chances of your return getting slowed down or lost in the mail. Software programs like TurboTax can guide you through the filing process to help you minimize errors–making the process user-friendly and quick for those with simple returns. Filing your taxes ahead of the April 30 deadline also means your return gets in before the CRA's busiest period, giving it a better chance of being reviewed quickly.
Double-Checking Information and Documentation
Simple mistakes, such as a wrong SIN, missing slips, or math errors, can cause your return to be flagged for review. Before you hit submit, take a few minutes to go over everything. Make sure all your income slips (like T4s or T5s) are included and that your personal details are correct. If you're claiming credits or deductions, remember to attach the required documents.
Consider using the CRA’s Auto-fill my return (AFR) feature when using a certified tax software to ensure slips like T4s or RRSP contributions aren’t missed. The AFR feature will automatically fill in parts of your return with information the CRA has on file at the time of your request. However, double check that the information pulled is accurate before you complete your return.
Setting Up Direct Deposit
To speed up how you get your refund, enroll in direct deposit through your CRA My Account or through your banking app. It’s secure and faster than waiting for a cheque in the mail. Once your return is processed, your refund will land in your bank account within a few days.
What to Do If Your Refund Is Delayed
Contacting the CRA for Clarification
If it’s been more than 10 business days (for e-filed returns) or 8 weeks (for paper returns) and there’s no update in My Account, it’s a good time to call the CRA directly and ask if any action is needed on your end. This will give you clarity on what’s causing the holdup so it can be quickly addressed.
Seeking Assistance from Tax Professionals
If you’ve contacted the CRA and the issue seems more complicated than expected, it might be time to get help from a tax professional. They can look over your return, spot anything that might be holding the process up, and communicate with the CRA on your behalf. This can be helpful for more complex tax situations, like those who are self-employed or claiming rental or foreign income. If you are missing filings from other years, consult with a tax clinic, an accountant, or a tax specialist for assistance on how to get caught up.
Reach out to Credit Canada for Help
Tax refund delays happen for a variety of reasons—some within your control, others not. Filing early, using direct deposit, and ensuring your return is complete and accurate can help avoid common issues. If you do experience a delay, tools like the CRA’s My Account portal and support from tax professionals can help you get clarity and take the right next steps.
If you’re anxiously awaiting your tax refund to clear up some debts, contact Credit Canada. Our certified Credit Counsellors provide free, confidential advice and can help create a plan for tackling debt once your refund comes in. Contact us today by calling 1(800)267-2272 or talk to our AI Agent, Mariposa.
