Reassessment

A tax return is the annual filing that reports your income, deductions and credits to the CRA so the final tax for the year can be settled. Payers withhold tax during the year and the return reconciles that against what you actually owe, producing either a refund or a balance to pay. For 2025 returns filed in 2026, refunds usually arrive in about two weeks for an online return, while a paper return runs on a considerably longer standard because it is handled manually.

Yes, the CRA does telephone people, usually about a balance owing, a missing return, an audit or to verify information, and calls can come from many different numbers, so caller ID proves nothing either way. A real agent never demands payment by gift card, cryptocurrency or e-transfer, never threatens immediate arrest or deportation, and never asks for a password. If a call feels wrong, hang up, check your balance and mail in My Account, then call back using a number from canada.ca.

Filing is required once tax is owed, and also in several situations regardless of income, including selling property, repaying benefits, splitting pension income, or receiving a request to file from the CRA. Below the basic personal amount most people owe nothing, yet filing still pays: the Canada Child Benefit, the GST/HST credit and provincial credits are all calculated from a filed return. Check the basic personal amount for the year you are filing.

Start with deductions that lower taxable income: RRSP contributions, childcare, eligible moving expenses, employment expenses your employer certifies, and interest on money borrowed to invest. Then claim credits, including tuition, medical expenses, donations and pension income splitting. Rental owners deduct mortgage interest, property tax, insurance, utilities and repairs on the rented portion, while improvements are capitalised and depreciated instead. Income splitting with family members runs into attribution rules, so get the structure checked first.