Have you glanced through your bank statement and encountered a strange deposit coded as RIT/RIF or Canada RIT Deposit? This means that you received a Canada Refund Income Tax (RIT). It’s a deposit sent from the Canada Revenue Agency (CRA).
It means that, when you filed your taxes, you were eligible for a refund, just like approximately 19 million Canadians. Whether as a result of overpayment during the year, savvy deductions, or government-issued credits, tax returns vary depending on your financial situation.
What Is Canada RIT Deposit?
Canada RIT stands for Canada Refund Income Tax and is the money you get back from the government after filing your taxes. When you link your bank account to the CRA using its online system, you can receive any regular credits and your income tax return deposited directly into your bank account.
Your online banking system shows the amount with a specific tag, meant to help you track where your income is sourced. If you’re scanning for the deposit, keep an eye out for RIT/RIF and Canada RIT to identify the transfer.
Who Is Eligible For The Canada RIT Deposit?
Between the end of February and April of each year, millions of Canadians submit their income taxes to the government. Provided they rely on T4s, rather than T4As, the individual is likely to receive some form of return.
This means that the person is employed, with payroll issuing the income taxes they have to pay directly to the CRA with every paycheque.
How Will You Receive The RIT Deposit?
Most Canadians use direct deposits. When the money shows up it will likely be tagged as Canada RIT Deposit on your bank account statement. Of course, you can get a cheque mailed to you instead. It is faster, however, with direct deposit.
How To Find Out Why You Received The Canada RIT Deposit
First, find out why you received that refund. Go online and access your CRA My Account through your standard login procedures. In most cases, you will receive an email to the address on file to notify you of a message, sent to inform you of the deposit.
Next, look at the inbox to find a message. It will indicate the amount and the reason. Be sure that the deposit information reflects what you actually received.
If there is any inconsistency between the deposit and the notice, or if you don’t believe the money belongs to you, contact the CRA right away. It could be an error, or simply your qualifying for a new tax credit.
Errors happen everywhere: on your credit score, on your credit card bill, and at the CRA. If you think there is any mistake like a payment missing or a something you don’t think is meant for you, report it.
If it turns out the money didn’t belong to you, the CRA can take it back.
Canada RIT Payments Dates
The deposit, or refund date if you prefer cheque, depends on the simplicity of your return, how you file, and when you complete the return.
First, the government must confirm the return. Then it must process it through your account. This can take up to eight weeks or 16 weeks if you live outside of Canada, but you can track the status on your CRA My Account Portal.
The amount of time it’ll take to receive the RIT deposit also depends on whether you file your taxes online and whether you have direct deposit set up.
- If you file your taxes online – The CRA generally is able to process your file within 2 weeks. Your payment can come within 14 days of your file being processed.
- If you file your taxes by paper – Paper returns can take up to 8 weeks to process after which you’ll receive your deposit by mail
Part of the reason it might take time is that if you owe any debt to the government, any refund pays that first.
Other Government Deposits
Income tax is often a major deposit, but if you receive a Canada RIT deposit, it’s likely you also get payments from other sources. Depending on your location, status of dependents, and other situational factors, you can qualify for other deposits as well.
Canada Pro Deposit
This deposit is sent to residents of Ontario and Alberta and shows up in your bank account under the name Canada PRO. There are four programs that make up the Canada PRO deposit depending on where you live the government assistance you are eligible for.
Ontario Trillium Benefit (OTB)
In Ontario, it comes in the form of the Ontario Trillium Benefit. This combines three credits, including sales tax, energy and property, and energy credit sums. If your total eligibility is less than $360 annually, you get it as a lump sum in July. If it is less than that amount, it gets deposited quarterly.
Alberta Child and Family Benefits (ACFB)
In Alberta, the equivalent service is classed as the Alberta Child and Family Benefits. Meant for middle and lower-income individuals with children under 18, this benefit is sent through the CRA, as a proxy for the Alberta provincial governments. As with the OTB, it gets calculated based on income, with the specific amount of the benefit varying based on that metric, combined with the number of children. The maximum you can receive is $5,120, with there being over four children and the lowest income threshold.
Short for Federal-Provincial/Territorial tax credit, this is meant to represent a whole range of government credits. It is a type of payment that encompasses the Canada Child Benefit and the GST/HST credit, short for goods and services and harmonized sales tax. A new addition to this is the climate action credit in British Columbia. Smaller provincial programs, handled through the Canada Revenue Agency, are also included in this category. Instead of featuring a whole host of different tags for the transfer, it is likely to show up as a Canada FTP.
When you receive a deposit, the money is now your responsibility. If it does not belong to you and you spend it anyways, you are still responsible for it in full.
Ensure that any deposit is your entitlement to avoid issues. Once you know that the RIT deposit is yours, you can save or spend how you please. You can pay down any outstanding personal loans, you can invest it, or pay for something you need.