Expect Fast Refunds, But Not ‘Til March.

Evelyn Jacks

Over the years, CRA’s EFILE service has significantly evolved.   But even if you were first in line to file this week, refunds won’t arrive until March. There is a lot of money at stake: last year close to 20 million filers waited to receive an  average tax refund of $1,850 and only 25% or just under 5 million chose to get it by cheque.  EFILE can definitely help to speed things up.  

EFILERs can use CRA’s automated services to file the current tax return (2020) plus three prior year returns (2017, 2018, 2019) using EFILE-certified software.  According to the new EFILE guide, Notices of Assessment will be available within 24 hours, and the first ones will be issued in early March.  That means refunds will likely follow a few days later in mid-March. 

For those people anxious about their refund status, a phone number has been provided:  1-800-959-8281.  Agents will be available 9am to 9pm local time from Monday to Friday only.  These folks will only be able to check the status of refunds four weeks after the electronic return has been accepted for processing.

 In other words, CRA will not really be able to assist those in limbo wondering about the status of their money until mid-April.  Again, a professional usually can do much better than that.

The new EFILE Guide notes that the onus is on the EFILER to inform their client if a delay is encountered in the submission of the EFILED return.  This professional also has access to a different line of communication with the CRA and may be able to get down to the bottom of the delay sooner than the help line staff can.

But a word of caution for those who are filing for others:   this is a bit opportunity to be of service in a tax season “like no other” as CRA has said.  More people will need to file returns due to the pandemic and its supports and many will be turning to professionals to help. If you are not ready with new staff to pick up the slack, the hours will be much longer in the 2021 tax season.  Knowledge Bureau can help with training support solutions.

Bottom Line:  For taxpayers expecting a refund, tax filing fees paid to a professional will be worth it.  The refund may be bigger, the wait time may be shorter and quite likely, the advice will be better. 

A tax specialist should be able to provide “what if” solutions that demonstrate how an RRSP contribution – for those eligible to make one and do so by March 1 - can turn a balance due into a refund, plus more. This includes increased refundable tax credits such as the Canada Child Benefit or GST/HST Credit.

A tax specialist can also provide guidance on TFSA contributions, which can create an important emergency fund for future lockdowns or unplanned income interruptions.

Additional educational resources: To find out more or to earn a second or independent income helping families in your community, check out the qualifications that a DFA-Tax Services Specialist™ brings to the important tax filing season.