If you’re reading this, I’m guessing you recently received a deposit in your bank account with “Canada RIT” or “RIT/RIF” as the caption. You’re in the right place if the answer is Yes.
Quick answer: Canada RIT is Canada Refund Income Tax and it is a deposit from the Canada Revenue Authority (CRA).
There are few things more exciting than receiving an unexpected credit from the Canadian government. But before you start spending the money, you should understand what the deposit mean.
In this post, you’ll learn everything you need to know about the deposit and what to do with it.
Let’s get started…
Canada RIT Meaning: What is Canada RIT Deposit?
Canada RIT refers to Canada Refund Income Tax and it is a direct deposit from Canada Revenue Authority (CRA). As the name suggests, if you received a deposit with the caption, it is a tax refund from CRA.
Usually the deposit will hit your account shortly after you filed your taxes. But they may also come any time of the year.
If you received the Canada Refund Income Tax deposit at any other time of the year, the most likely reason is a reassessment of the taxes you’ve filed. And you should receive a notice of reassessment in your mail or through your online account with CRA.
Note that CRA can reassess your tax return within 3 years of the date of the initial notice of assessment.
The money isn’t much in most cases. But irrespective of the amount, you should confirm the reason for the credit before you spend it.
New CCB and GST/HST Credit payment period started in July 2023.
Your payments will be reassessed using your 2022 income. Find out how much you can receive as Canada Child Benefit and GST Credit.
What to Do After Receiving Canada RIT?
The first thing you should do after receiving the credit is to confirm what it’s for.
The quickest and easiest way to do this is by logging into your My Account with CRA. The CRA My Account is a great service for every Canadian tax-filer.
You can get information about your benefits, taxes filed, notices of assessment (NOA), notices of reassessment and many more.
Once logged in, check the message section to view any correspondence you have from CRA.
If you still can’t find any message relating to the Canada Refund Income Tax deposit, then it’s best to place a call to CRA.
How to Use Canada RIT Deposit?
Depending on how much the credit is, you may be wondering what to do with the money.
The money is yours to do as you wish. And you can indulge yourself or upgrade some electronics in your apartment. After all, you were not expecting it.
But seriously…
You should treat the Canada Refund Income Tax deposit like any other tax refund you receive from CRA. That is, make the most of the money by putting it towards one of your financial goals like:
- Topping up your emergency fund
- Paying down your debts
- Saving for a down payment
- Investing towards retirement
- Making a payment you would have made anyway, for example annual life insurance premium or subscription for a professional membership and so on
Whichever way you choose to use the money, just remember that every dollar counts towards meeting your financial goals.
Related Post: Here are smart must have financial goals to take control of your finances
Who is Eligible For Canada RIT?
So who is eligible for Canada RIT?
Both individuals and businesses can get the Canada Refund Income Tax deposit.
For example, the Small Business Job Credit that was paid to many small businesses in 2016 had the caption. In that instance, the deposit was meant to reduce the Employment Insurance (EI) premiums that businesses had to pay.
Also, a few people have received the payment for the Climate Action Incentive (CAI) in their account with the same caption.
Whatever the reason, your CRA My Account is the easiest an fastest place to check and confirm the payment.
Is Canada RIT Taxable?
Canada RIT is not taxable. It’s a tax refund after all. This means you won’t have to include it as a taxable income when your file your income tax returns.
Related: Learn how to keep more of your income and reduce your taxes.
Canada RIT Mistake to Avoid
It’s not uncommon to receive tax refund after filing your taxes with the CRA. However, there are times when the CRA mistakenly credit those that are not eligible for tax refund.
So the major Canada RIT mistake you want to avoid is to ensure that you’re eligible for the deposit before spending the credit.
If you’re not eligible for the deposit and spend it, the CRA will identify you sooner or later. This could result to heavy charges and penalties that could impact your finances and reputation.
As such, you want to notify the CRA and return the deposit if you’re not eligible for it.To fix any Canada RIT mistake based on wrong tax filing, you should apply for the CRA Voluntary Disclosure Program (VDP) grant relief before the CRA notices the error.
Canada RIT Dates 2023
There are no specific or scheduled payment dates for the Canada Refund Income Tax. They are usually paid after CRA is done accessing or reassessing your tax returns.
Usually, you can expect your tax refund within 2 weeks of filing your tax returns if you filed electronically. Or up to 8 weeks for paper returns.
How Often is Canada RIT Paid?
Since there are no regular payment dates for the Canada Refund Income Tax deposit, you can expect Canada RIT to be paid as a lump sum amount after any CRA assessment. Not monthly, quarterly or annually.
However, you may get it once in a year after filing the normal tax returns, and other times for reassessed tax returns.
How Much is Canada RIT?
The amount you receive as Canada RIT can be a small as a few hundred dollars or as high as a few thousands.
It is difficult to say and estimate since it depends on what exactly the refund relates to. For example, if your income tax returns were reassessed for a few years and CRA sends you a refund, the total amount you get as Canada RIT may be material.
Other times, the reassessment will only result in smaller amounts.
What is Canada RIF?
Canada RIF is another term for Canada RIT. If you receive a deposit in your bank account with RIT/RIF as the caption, it is a tax refund from CRA. Like the Canada RIT deposits, check your CRA My Account to confirm the payment or make a call to them.
Additional Government Deposits
Receiving the Canada Refund Income Tax alongside other government deposits will maximize your annual income on government benefits.
Here are some other government benefits you may qualify for as a Canada RIT recipient.
Canada Pro Deposit
Canada Pro is a two-in-one deposit for Ontario Trillium Benefit (OTB) and Alberta Child and Family Benefits (ACFB).
Both OTB and ACFB aim to improve the living conditions of low-medium income earners in Ontario and Alberta, respectively.
So if you live in Ontario or Alberta and meet the requirements of OTB or ACFB, you may receive a direct bank deposit from the federal government with the description “Canada Pro.”
However, how much you get from the OTB or ACFB depends on your individual and family situation.
Learn more about the Canada Pro Deposit and the eligibility in the linked post.
Canada FPT
Canada FPT is a description for a wide range of provincial/territorial benefits administered by the Canada Revenue Agency, such as:
- Canada Child Benefit (CCB)
- Goods and Services Tax/Harmonized Sales Tax (GST/HST) and
- BC Climate action tax credit
Each of these programs has different requirements and payment dates. Depending on the program you qualify for, you will receive the Canada FPT deposit on the program’s payment schedule.
For example, GST/HST deposits are disbursed quarterly while CCB deposits are paid monthly (with July to June payment cycle)
Learn more about the Canada FPT here.
GST/HST Credit
You can also receive the goods and services tax/harmonized sales tax (GST/HST) credit alongside Canada RIT once you meet the requirements.
GST/HST is administered by the Canada Revenue Agency on behalf of the federal government as a tax rebate on sales taxes in Canada.
That said, GST/HST credits are paid quarterly alongside other provincial and territorial programs, such as:
- BC climate action tax credit
- Ontario sales tax credit
- New Brunswick harmonized sales tax credit
- Northwest Territories cost of living offset: a
- Newfoundland and Labrador income supplement
- Saskatchewan low-income tax credit
- Nova Scotia affordable living tax credit
- Yukon government carbon price rebate – individuals
- Prince Edward Island sales tax credit
If you qualify for the payment, you can expect the payment on the 5th day of the quarter, or the previous business day when the 5th day falls on a weekend or public holiday.
Learn more about the GST/HST Credit here.
Canada Workers Benefit
This is a refundable tax credit administered by the CRA quarterly to low-income individuals and families in Canada.
Canada Workers Benefit (CWB) comprises two benefits: basic amount and disability supplement. The basic amount is administered to every Canadian that meets the CWB eligibility.
Your marital status, eligible dependents, and net income will determine how much basic amount you will receive on CWB.
On the other hand, the disability supplement is administered to CWB beneficiaries that qualify for the disability tax credit.
Depending on your needs, you can receive the CWB as a one-lump sum deposit or quarterly deposit. Learn more about the Canada Workers Benefit.
Some FAQs on Canada RIT Deposit
You get Canada RIT deposit as a tax refund from the CRA upon filing your annual tax return.
More likely! The Canada RIT could be your tax return from the Canada Revenue Agency if you file your taxes recently o r have your taxes reassessed by the CRA. But you should always confirm the deposit from your CRA My Account to ensure that you are eligible for the return you received.
The quickest way to get details about the credit is through your CRA My Account
The CRA reassessment period is 3 years. That means your tax return can be reassessed within 3 years of the date of your original notice of assessment.
No, the Canada RIT deposit is a refund of taxes you’ve paid in the past. Therefore, it is not taxable and you won’t have to include it in your income tax returns.
No, it’s considered a tax refund by the Canada Revenue Agency. As a result, the deposit is not taxable.
It probably means a tax refund from the Canada Revenue Agency. The exact meaning of the deposit can be found in your CRA My Account.
You will receive the deposit when the CRA completes assessing your tax return. It often takes 2 to weeks to receive the tax return when you file it online.
But if you file your tax return on paper, it can take up to 8 weeks to get the return.
However, it can take up to 3 years to get the deposit should the CRA subject your tax return to reassessment.
The deposit could be valid if you file your annual return. However, it could be an error from the CRA if your information was misinterpreted or mistaken for another person.
To confirm the status of the deposit, you should log in to your CRA My Account and navigate to the Notice of Assessment section.
If you notice that the deposit was an error, you shouldn’t report it to the CRA immediately to avoid putting yourself into trouble.
Yes! Any individual or business that files their income taxes can expect to receive the deposit.
You can also check these posts to learn about Canada Pro Deposit, Canada FPT and Canada Fed, other payments from CRA with unclear descriptions.
Summary
So what is Canada RIT in my bank account?
It is a direct deposit from Canada Revenue Authority (CRA) and it’s most likely a tax refund. However, you should log into your account with CRA to confirm the deposit and see if you have a notice of reassessment.
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Thinking of filing your taxes yourself this year? Check here for the best free tax software for Canadians.
Also, check out this post on some of the best personal financial apps and products available to Canadians.
Is the RIT taxable income for the following year?
No, tax refunds are not taxable.
Thank you for the info…I will share with others on your behalf…impressive 🙂
Do I still get monthly payments in my Bank Account on my HST & G.S.T for 2020 this year 2021 the same as last year? even though I got this Canada RIT Deposit 2021 in my Bank Account now?
Hi Allan,
If your 2020 income is still within the income range for GST/HST credit, yes you will. You can check here for details and get an estimate of how much you can receive starting in July.
WHAT HAPPENS TO OTB?
Hello I received the assessment just wondering how long it takes to be deposited in Bank
I never knew about the Rit. Can my accountant help me apply? And can it go back for pass income tax filing? I am self employed and make monthly payments to CRA . Does that make any difference?