Plain meaning
An amount paid back to a taxpayer when credits, instalments, or source withholdings exceed the final tax and other amounts payable.
Also called
refund
Key points
- A refund is generally determined after a tax return is assessed.
- Refunds can result from payroll withholding, refundable credits, instalments, or deductions claimed on the return.
- CRA may apply a refund against other government debts in some circumstances.
- A large refund does not necessarily mean lower tax; it can mean too much was withheld during the year.
Why it comes up
Refund timing and amounts matter during filing season and when governments change refundable credits or benefit delivery.