When you complete all your calculations and submit your tax return, the Canada Revenue Agency (CRA) sends you a Notice of Assessment (NOA). Your NOA is like a receipt containing the evaluation of your tax return.
The Notice of Assessment will include the date your tax return was processed, how much you owe or refunds and credits you can get. It will also include your Registered Retirement Savings Plan (RRSP) deduction limit for that year.
In this comprehensive guide, we’ll discuss the significance of Notice of Assessment and its vital role in the tax process, from the basics of what it is, to why you should pay close attention to it.
What Is a Notice of Assessment?
A Notice of Assessment (NOA), is a crucial document you receive from the CRA after submitting your tax return. It serves as a receipt to confirm that your tax return has been received and thoroughly reviewed.
Your NOA contains key information, including a summary of your tax return and any changes the CRA may have made. The NOA includes details about any amount you may owe to the CRA or the refund or credit you can expect to receive.
Additionally, it specifies your Registered Retirement Savings Plan (RRSP) deduction limit for that particular year. It can also alert you to any potential problems that might need your attention, enabling you to take the necessary steps to address them.
When you receive your NOA, it is essential to review its contents carefully. Understanding the information provided will help you confidently complete your tax obligations for the year.
What Does Your Notice of Assessment (NOA) Include?
Let’s break down the key components of a Notice of Assessment so you know exactly what to expect.
1. Account Summary
You’ll find the Account Summary section at the very top of your assessment. This area provides a quick overview of your financial status with the CRA. It clearly states the precise amount of money you owe, if any, to the CRA.
On the other hand, if you don’t owe anything, it will show a plain and empty balance. Additionally, if you are entitled to a tax refund, the expected amount you will receive will be specified in this section.
2. Tax Assessment Summary
The Tax Assessment Summary is a crucial part of the NOA. It contains information about your income, credits, deductions, and any interests or penalties that may have been added to your refund.
This section gives you a comprehensive view of how your taxable income was calculated and whether the CRA made any adjustments.
3. Explanation of Changes and Other Important Information
Sometimes, the CRA may identify discrepancies between the information you submitted in your tax return and the information they have on record. In such cases, they will make changes or corrections to ensure accuracy. Any alterations the CRA makes to your tax return will be detailed in the Explanation of Changes section.
Additionally, if you fall between 24 and 66 years, you’ll find your Canada Training Credit (CTC) limit here. This amount represents a refundable credit for eligible tuition or training fees you can claim in future years.
This section also provides essential information about benefit payments you might receive from the CRA. It includes details about when you can expect to receive notices regarding GST/HST credits or Canada Child Benefits.
4. RRSP Deduction Limit Statement
The final section of your NOA deals with your Registered Retirement Savings Plan (RRSP). You’ll find information about your RRSP contribution room and deduction limits for the next tax year. If you made excess RRSP contributions during the tax year, this section will also indicate that. In such cases, you may be subject to paying taxes on the excess amount.
5. Home Buyers’ Plan Statement
If you participate in the Home Buyers’ Plan, which allows you to withdraw funds from your Registered Retirement Savings Plan (RRSP) to purchase or build a qualifying home, you will find pertinent details about it in your Notice of Assessment or reassessment.
You’ll see your HBP statement, which shows the remaining balance you must repay and the minimum required repayment for the next year. The minimum required repayment represents a portion of the balance you owe.
It is crucial to adhere to this repayment schedule diligently. Failure to meet the minimum amount can result in consequences, as the difference will be considered RRSP income on your tax return.
6. Lifelong Learning Plan Statement
If you applied for the Lifelong Learning Plan (LLP), which is designed to help you finance your education or training, you’ll also find information about it in your Notice of Assessment. The LLP statement will display the balance left to repay and the minimum required repayment for the upcoming year.
As with the Home Buyers’ Plan, you must meet the minimum required repayment for your LLP to avoid any unwanted tax implications. Paying less than the minimum amount can lead to the difference being treated as RRSP income on your tax return.
When Will I Get My Notice of Assessment?
If you’ve opted for online mail through your CRA My Account, you’re in luck! With the CRA’s Express NOA service, you can receive your Notice of Assessment immediately after filing your return. This convenient option allows you to access and review your assessment without delay.
On the other hand, if you prefer a paper copy of your NOA, you can expect it to arrive in the mail approximately 1 to 2 weeks after your return has been assessed.
For residents of Québec, the process is slightly different. If you filed your return online, you can expect to receive your NOA from Revenu Québec within 2 weeks. However, if you filed your return by mail, it might take up to 28 days for your NOA to arrive.
If you registered for online NOA delivery, you can access it through your Revenu Québec My Account for individuals. Otherwise, you’ll receive a paper copy of your NOA in the mail.
What If the Changes on My Notice of Assessment Don’t Make Sense to Me?
It’s important to be aware that NOAs are computer-generated, and some explanations might not be easy to understand at first glance. However, you can contact the CRA (or Revenu Québec) for assistance.
Contacting the CRA will help you fully comprehend any changes made and verify that they are accurate and aligned with your financial situation.
How and Where to Get a Notice of Assessment
If you’ve recently filed your taxes and are eagerly awaiting your Notice of Assessment, there are several ways to obtain it. Let’s explore the current valid methods:
- Log into your CRA My Account Online: The fastest and most convenient way to access your Notice of Assessment is by logging into your CRA My Account online. If you don’t have an account yet, don’t worry; you can easily register for one. Check out our article on how to set up your CRA My Account by clicking here.
- Choose the Mail Option When you File your Tax Return: If you prefer to receive a physical copy of your Notice of Assessment in the mail, you can do so when you file your tax return. On your T183 form, you’ll find a section where you can receive your assessment electronically or by mail. Select the mail option, and your new Notice of Assessment will be sent to your address.
- Call the CRA to Mail you a New Copy of your Notice of Assessment: Alternatively, you can contact the Canada Revenue Agency directly and request them to mail you a copy of your Notice of Assessment. They can also assist if you have yet to receive your assessment or need another copy. To reach them, call 1-800-959-8281. Remember that the phone lines are busiest around noon, so it’s best to call earlier or later in the day. They’ll likely ask for verification details, such as information from your last two tax returns.
- Choose the Email Option When you File your Tax Return: You can provide your email address while filing your tax return with the Canada Revenue Agency. Opting for this choice allows them to send your Notice of Assessment directly to your inbox. It’s a convenient and eco-friendly option for those who prefer digital correspondence.
What Is an Express Notice of Assessment?
The Express Notice of Assessment is an official document the CRA provides that allows individuals and authorized representatives to view their assessment quickly after filing their tax returns electronically.
Payments may not immediately appear on the Express NOA, but they can be confirmed through online banking, My Account, or the Individual Tax Account Balance Automated Service.
This secure and convenient service benefits taxpayers and authorised representatives, making tax filing more efficient and accessible.
Notice of Assessment Refunds
When it comes to receiving refunds after filing your taxes, a few methods are available to you, making the process convenient and hassle-free. The Canada Revenue Agency (CRA) offers two primary options for receiving your tax refund:
- Direct Deposit: Direct deposit is one of the most efficient ways to get your tax refund. If you’ve set up a direct deposit with the CRA, your refund will be electronically transferred directly into your bank account. This method ensures you get your money quickly and securely. When your Notice of Assessment arrives, it will clearly state the refunded amount. Remember to keep this notice or statement for your records, as it is an official record of your tax refund.
- Cheque Payment: Alternatively, if your Notice of Assessment includes a cheque, you can cash it at your convenience. Before doing so, it’s crucial to verify that the amount on the cheque is correct. If you suspect any errors in the assessment, carefully review the information provided on the notice. If you discover any mistakes, don’t worry. The CRA allows you to request an adjustment through their process for changing your return. This way, you can ensure that any necessary corrections are made promptly.
Final Thoughts on Notice of Assessment
The Notice of Assessment is a vital document that provides valuable insights into your tax affairs. It is important that you stay informed about your tax status with the NOA.
Remember to always save copies of your notice of assessments, as they contain important information such as your name, address, birth date and other sensitive data. Most importantly, they contain details on income received and tax you or your employer have paid.
Taking steps toward proper record management when you get assessment notices will help you avoid penalties, keep your tax filing accurate, and protect your financial information.
FAQs on Notice of Assessment
Where Should I Keep My Notice of Assessment?
Keep your previous year’s Notice of Assessment (NOA) in a safe place, like a tax envelope, folder, or drawer, as you may need it for purposes beyond filing your taxes.
When applying for a mortgage, loan, or certain social programs, you might be asked to provide a copy of your NOA to verify your income for the previous year. Having it easily accessible can save you time and hassle when dealing with these situations.
Is the Date I Receive My Notice of Assessment Important?
The date on your notice of assessment is crucial as it determines two important timelines. Firstly, it sets the deadline for objecting to any changes made by the CRA (or Revenu Québec). Secondly, it marks the beginning of a three-year period when the CRA can reassess your return.
Beyond this period, reassessment is limited, except in cases of fraud or negligence in return preparation. So, it’s essential to take note of this date and be aware of the reassessment possibilities.
Can This Year’s Notice of Assessment Help Me Next Year?
Yes. Your Notice of Assessment (NOA) is valuable for your future tax return preparation. It includes your RRSP contribution limits for the year. Additionally, it contains carry-forward amounts, such as capital losses, unused tuition credits, and Home Buyers’ Plan (HBP) details, which will benefit next year’s return.
What Should I Do If I Lost My Notice of Assessment?
If you’re having trouble locating your NOA issued by the CRA or Revenu Québec, there are several ways to obtain a copy. For NOAs issued after February 9, 2015, you can log into your CRA My Account (registration required) to view and print them, and for older years, detailed summaries of your NOAs are available.
Additionally, you can use the MyCRA app to access your current year’s NOA and the previous three years.
If you are looking for an NOA or notice of reassessment issued by Revenu Québec, simply log into your My Account for individuals (registration required), and you can view and print a copy dating back to 2004. These options provide a convenient way to obtain your NOA and efficiently track your tax records.
What Is a Tax Return?
A tax return is a simple form that all Canadians fill out each year to let the CRA know how much money they receive from all eligible sources of income during the year. It’s really easy to do—the CRA just want to be able to keep track of how much you made and make sure everyone is paying their share in taxes.
