How Overpayments Are Handled
Refund Issued
If you overpay your taxes, the CRA will calculate the overpayment and issue a refund.
Refunds are typically sent directly to your bank account if you’ve signed up for direct deposit, or by cheque if not.
Applied to Other Balances
If you owe money on other CRA accounts (e.g., prior tax years, GST/HST, or benefits overpayments), the CRA may apply the overpayment to those balances before issuing a refund.
Interest on Refunds
In some cases, the CRA may pay you interest on the overpayment, especially if your refund is delayed beyond their processing standards.
How to Check Your Refund Status
Log in to your CRA My Account to see the status of your tax return and refund.
Use the CRA’s Refund Status Tool or call the CRA Refund Inquiry Line.
How to Avoid Overpayments
Double-check your calculations before filing your tax return.
Use tools like CloudTax, which automates tax calculations to ensure accuracy.
Review your tax deductions and credits to avoid underestimating your payments.
Important Notes
Overpayments are not lost—you will either receive a refund or have the amount applied to outstanding balances.
Refunds typically take two weeks when filing electronically and up to eight weeks for paper returns.
Why This Matters
Overpaying your taxes is not ideal, but rest assured that the CRA has processes to ensure you get your money back. Being precise with your tax calculations helps you avoid delays and keeps your finances in order.