Did you see a surprise “Canada RIT” deposit on your bank statement and are wondering what it means?
Canada RIT is a payment from the Canada Revenue Agency (CRA), which refers to Canada Refund Income Tax.
While you may find Canada RIT deposits a bit surprising, there’s nothing to worry about, and the money is yours to spend as you will.
What is Canada RIT?
Canada RIT stands for Canada Refund of Income Tax. It is sometimes recorded as Canada RIT/RIF on your bank statement.
This payment simply means that the CRA assessed or reassessed your income tax return, and you are due for a tax refund.
Canada RIT Payment Dates in 2024
On what dates are Canada RIT deposits paid out?
It varies, and there are no specific dates, as it depends on when you file your taxes and whether there is a CRA reassessment at some point later in the year.
The tax season for individuals in Canada runs from February to April. Self-employed sole proprietors get an extension until mid-June.
After filing your annual tax return, you should get a tax refund (if applicable) within 2 weeks if you file online or up to 8 weeks if you file a paper return.
Note that Canada RIT/RIF deposits may also occur up to 3 years after filing a return if the CRA does a reassessment down the road.
Who Qualifies for Canada RIT Deposits?
All Canadians who file an income tax return may be eligible for a refund if they have paid more taxes than they owe.
Even if you haven’t earned employment income in a particular year, you should still file a tax return.
Businesses may also qualify for Canada RIT deposits through the Small Business Job Credit.
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If you are unsure about what your CRA deposit is about, one place to find out is through your CRA My Account.
This online account shows your Notice of Assessment (NOA) or Reassessment and also benefits and correspondences from the CRA.
Are Canada RIT Deposits Taxable?
Canada RIT deposits are not taxable.
If the RIT payment is less than expected, it could mean that you do not qualify for some of the deductions or credits on your tax return.
If your Canada RIT deposit is more than expected, then it is possible you paid even more taxes than owed or did not apply for all eligible credits.
Your NOA will contain this information.
How To File Your Taxes in Canada
The deadline to file your income tax return in 2024 is April 30th. If you or your spouse is self-employed, then you have until June 15th.
You can file your taxes online using tax software like Turbotax, Wealthsimple Tax, or uFile.
Other ways to file your return include:
- Paper tax returns by downloading forms from the CRA’s website.
- Free tax clinics if you have a modest income
- File My Return via CRA’s automated phone service.
It is always great to get unexpected payments like the Canada RIT in your bank account.
Instead of splurging the funds, you can use them to grow your emergency savings, tax-free savings account, or registered retirement savings plan account (RRSP).
You can also put it towards your kid’s college education by contributing to a registered education savings plan (RESP).
Canada RIT FAQs
What does Canada RIT mean on my bank statement?
It refers to a Refund of Income Tax and means you paid more in taxes than what you owed.
Who is eligible for Canada RIT?
If you file a personal income tax return, you may receive a Canada RIT payment.
What is the maximum Canada RIT deposit?
There is no maximum, although the average tax refund (Canada RIT) in 2023 was $2,248.