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.
There are few things more exciting than receiving an unexpected credit from the government. But before you start spending the money, you should understand what Canada RIT deposit mean.
In this post, you’ll learn everything you need to know about the credit and what to do with it.
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 most likely 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 RIT 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.
What to do if you received 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 or 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 RIT deposit, then it’s best to place a call to CRA.
What to do with the 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.
You should treat the Canada RIT 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.
Who gets Canada RIT?
Both individuals and businesses can get the Canada RIT 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.
Canada RIT stands for Canada Refund Income Tax. If you received any credit in your bank account with the caption, it is likely a tax refund.
The quickest way to get details about the credit is through your CRA My Account
3 years. Your tax return can be reassessed within 3 years of the date of your original notice of assessment.
You can also check this post to learn about Canada Pro Deposit, another payment from CRA.