Canada RIT: Frequently Asked Questions
In case you recently received a bank deposit in your account and it was captioned “Canada RIT” or “RIT/RIF” as the caption and you are puzzled, you have come to the right place for the answer. Receiving an unexpected credit from the Government of Canada can be really exciting. However, before you start splurging on all of that Government cash, you should spend some time understanding what it is. In this post, we will answer all the frequently asked questions associated with Canada RIT. Let’s get started.
Canada RIT: FAQs
What is Canada RIT Deposit?
Canada RIT refers to Canada Refund Income Tax and it is a direct deposit from Canada Revenue Authority (CRA). As the name suggests, if you received a deposit with the caption, it is most likely a tax refund from CRA.
When do we receive Canada RIT deposit?
Usually, the deposit will hit your account shortly after you filed your taxes. But they may also come at any time of the year.
If you received the Canada RIT deposit at any other time of the year, the most likely reason is a reassessment of the taxes you’ve filed. And you should receive a notice of reassessment in your mail or through your online account with CRA. Note that CRA can reassess your tax return within 3 years of the date of the initial notice of assessment.
What is the amount of Canada RIT deposit?
The money isn’t much in most cases. But irrespective of the amount, you should confirm the reason for the credit before you spend it.
What is Canada RIF/RIT?
When RIT/RIF appears on your bank statement it is likely your tax refund from the Canada Revenue Agency. RIT, stands for Refund of Income Tax. Words to the wise—it’s best save or invest your tax refund rather than spend it.
What to do if you received Canada RIT?
The first thing you should do after receiving the credit is to confirm what it’s for.
The quickest and easiest way to do this is by logging into your My Account with CRA. The CRA My Account is a great service for every Canadian tax-filer.
You can get information about your benefits, taxes filed, notices of assessment (NOA), notices of reassessment and many more.
Once logged in, check the message section to view any correspondence you have from CRA.
If you still can’t find any message relating to the Canada RIT deposit, then it’s best to place a call to CRA.
What to do with the RIT deposit?
Depending on how much the credit is, you may be wondering what to do with the money.
The money is yours to do as you wish. And you can indulge yourself or upgrade some electronics in your apartment. After all, you were not expecting it. You should treat the Canada RIT deposit like any other tax refund you receive from CRA. That is, make the most of the money by putting it towards one of your financial goals like:
- Topping up your emergency fund
- Paying down your debts
- Saving for a down payment
- Investing towards retirement
- Making a payment you would have made anyway, for example, annual life insurance premium or subscription for a professional membership and so on
Whichever way you choose to use the money, just remember that every dollar counts towards meeting your financial goals.
How much GST refund will I get?
The maximum amounts for the 2019-2020 benefit year will increase from: $443 to $886 if you’re single. $580 to $1,160 if you’re married or living common-law. $153 to $306 for each child under the age of 19 (excluding the first eligible child of a single parent)
What does Canada Pro mean in a bank statement?
Canada Pro is Ontario Trillium Benefit – which is the Ontario Energy and Property Tax Credit, you get this amount if you are a resident of Ontario renting or owning a house.
Who qualifies for Canada pro?
To qualify, you must be a resident of Northern Ontario on December 31, 2019, and at least one of the following at some time before June 1, 2021: 18 years of age or older. have or previously had a spouse or common-law partner. a parent who lives or previously lived with your child.
What is not considered taxable income in Canada?
These don’t qualify as non taxable income in Canada: disability insurance proceeds, depending on how the premiums were paid. – lottery winnings, and raffle prizes, unless the circumstances deem that the proceeds are considered income from employment, business or property, or a prize for an achievement.
Who gets Canada RIT?
Both individuals and businesses can get the Canada RIT deposit.
For example, the Small Business Job Credit that was paid to many small businesses in 2016 had the caption. In that instance, the deposit was meant to reduce the Employment Insurance (EI) premiums that businesses had to pay.